What's A Wrapped Token? | WBTC, WETH Explained

Рет қаралды 28,798

Күн бұрын

To trade Bitcoin on the Ethereum blockchain is almost impossible, but with WBTC, you can. Enter the world of wrapped tokens, tokens that let you transact on other platforms. This video will fill you in on all you need to know about wrapped tokens! From how they work to their purpose, let's explore!
Links Mentioned
Explore wrapped tokens - www.coingecko.com/en/categori...
WBTC - www.coingecko.com/en/coins/wr...
WETH - www.coingecko.com/en/coins/weth
Timestamps:
00:00 What are wrapped tokens?
01:00 How do wrapped tokens work?
02:05 WBTC
03:39 WETH
04:38 Advantages & disadvantages
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#WrappedToken #WBTC #WETH #WBNB #WAVAX #WLUNA

Пікірлер: 36

@AquarianAgeApostle 3 ай бұрын

Hands down the best explanation video Ive ever seen when breaking down ANY concept let alone explaining the Wrapped utility in DeFi exchange. Cheers, Gecko.

@affiliatemarketingsoldier6885 5 ай бұрын

Thank you for this informative video. Liked and Subscribed. 😃

@everythingishere5741 2 жыл бұрын

Thanks for all the info!

@CoinGecko 2 жыл бұрын

💚

@kingkeebo80 Жыл бұрын

Great video!

@jff7138 7 ай бұрын

Hello. Wondering what to do with btc erc-20 token please is it safe to transfer to a wbtc erc-20 address then swap to other coins please

@saeedmws2722 2 жыл бұрын

Good podcast 👏

@mrYtuser01 4 ай бұрын

Thank you

@danielpiesto532 4 ай бұрын

How can I send BBTC from Metamask to Binance?

@irfangull9172 2 жыл бұрын

Main thing you haven’t mentioned is bridge hacks. Pity

@promisecletus5908 Жыл бұрын

How can I know more about bridge hacks?

@JoeTchify 2 жыл бұрын

What happens when the token is increased in circulation or decreased? Does it increase token wrappers?

@jazzingpanda3190 2 жыл бұрын

If you mean an increase in circulation of ETH, and are asking about the circulation of WETH. Then; WETH gets minted buy the custodian when a holder of ETH chooses to bridge / wrap their ETH. The number of WETH in circulation increases when ETH is wrapped. So this is “1:1”, however it does not mean ETH is 1:1 with WETH in terms of circulating supply as unless ETH is chosen to be wrapped, it doesn’t get wrapped. So there can be 100 ETH, and that may increase in supply to 110 ETH. However if of that 100 ETH only 10 WETH exists, the increase of ETH to 110 doesn’t mean you get any more WETH, UNLESS they are minted. So it may just remain as 10 WETH when 110 ETH exists. Unless some of the new ETH is wrapped, then the supply of WETH won’t increase in respect to the increase in ETH. Hope this helps.

@JoeTchify 2 жыл бұрын

@@jazzingpanda3190 Does that mean the WETH can increase in value more than ETH if it's only limited to 10 WETH?

@jazzingpanda3190 2 жыл бұрын

@@JoeTchify Not quite. The value of WETH is *ideally* exactly that of ETH. (assume it is in 99.99% of cases unless there’s something major wrong.) The FIAT value of 1 ETH is the same of 1 WETH. Although they *technically* exist as a separate currency, try to think of wrapped tokens as the same currency as the base coin, just existing on a different blockchain. (Hence the terminology change of token / coin.) To fill out my point, the total market cap of ETH and WETH can differ greatly depending on the number of each in circulation, however the FIAT value of 1 ETH / 1 WETH will remain equal. Does this make sense?

@JoeTchify 2 жыл бұрын

@@jazzingpanda3190 No it doesn’t. Because if WETH has a higher volume than ETH, how does the price stay the same? If more people buy a certain limited amount of tokens the price always goes up. So if the market cap of WETH is a 100 billion dollars, and ETH market cap is 20 billion, but the price of WETH stays the same as ETH, that wouldn’t make sense. Unless more WETH is being added into circulation to keep the same price as ETH.

@sayandcode 9 ай бұрын

Nice text to speech tool! Is this AWS Polly?

@orrinreid5297 11 ай бұрын

So basically I can Wrap my Btc or Eth in BNB making it WBNB and then I am able to use the BTC OR ETH on the BNB blockchain?

@ROYSMoGraphDesign9900k 9 ай бұрын

i think so

@adrianesteven3766 Ай бұрын

❤ wrapping

@worldfamous260dewitt 25 күн бұрын

Yes unless is wrap .This is important for the structure of making it official in a sense.... it's like say BTC & Eth is the only logical two needed to exchange equivalently. Because of the liquidity it can create...vs the fan based Eth brings with alts.

@iamlove7096 2 жыл бұрын

Why are Bitcoin Holders in the Philippines so Unsupported?

@andywong2244 Жыл бұрын

what do you mean by unsupported?

@ArtBuddy-bf1is 4 ай бұрын

What a lot of BST

@Voretch_ Жыл бұрын

You don’t own it the private keys are being kept by a private chain outside your control

@J9045hello Жыл бұрын

eh-th? ee-th ftw lol

@johnmccullough1401 8 ай бұрын

Hardly leaned anything from this.. just seems to be a platform to help increase bitcoin and etherium

@LeToyRider24 2 жыл бұрын

I think anyone selling their Bitcoin or Ethereum because of the dip, has no idea what they are holding in the first place. Long term hodlers are not going to sell a single Satoshi. We are on downtrend which the chances of bouncing up off this resistance is much greater than falling lower. Now I buy and just trade and I'm super picky who I listen to for crypto analysis. We should focus on day trading, as it is less affected by the unpredictable nature of the market. Big thanks to Lincoln Mount for helping me earn 18 BTC, after implementing his daily trading signals and tips. I'm not bothered with how bad the Market is turning out.