A whale trader warns that with the unlocking of Worldcoin in late July, the supply of $WLD will begin to expand at a rate of 4% per day, which could lead to severe inflation and a months-long wave of selling.
(Background:
Worldcoin launches its own Layer2 network, “World Chain,” will Worldcoin (WLD) explode?)
A whale trader warns that with the unlocking of Worldcoin in late July, the supply of $WLD will begin to expand at a rate of 4% per day, which could lead to severe inflation and a months-long wave of selling.
Source: TradingView
Many global users who regularly receive WLD airdrops by scanning their irises and deleting the data are still looking forward to the future performance of the Worldcoin bull market. However, today they were poured cold water by a whale trader.
@DefiSquared, the top-ranked trader on Bybit, wrote today that Worldcoin could actually become the biggest wealth transfer of the entire cycle. However, this wealth transfer is not carried out in the form of a universal basic income (UBI) as suggested by the official project, “but rather into the pockets of the team and insiders.” He criticized Worldcoin as a deceptive project that is “not actually connected to OpenAI.”
He pointed out that with the continuous increase in the unlocking amount of WLD, severe inflation will soon occur, followed by a wave of selling in the coming months.
Further reading:
WLD falls below $8! Analyst: Unlocking index-level growth, official OTC shipments…buying Worldcoin is risky.
In response, he compiled several data points that will lead to severe inflation and analyzed as follows:
1. The current fully diluted valuation (FDV) of WLD is $60 billion. Due to the distribution of grants and the claims made by operators (most of which are almost immediately sold according to on-chain analysis), its value depreciates by 0.6% per day.
2. The Worldcoin Foundation has just announced that they will sell $200 million worth of tokens to market makers at a discount, equivalent to selling an additional 18% of the total circulating supply to trading partners. These $200 million worth of tokens are part of the distribution from the “community.”
3. Most importantly, with only 70 days left before the VC and team unlocking begins, the supply of WLD will start to expand at a rate of 4% per day (unlocking amount + emission amount). For insiders who want to cash out at a $60 billion FDV, they face nearly $50 million of uninterrupted selling pressure every day.
WLD will start unlocking in late July, and the daily emission rate of WLD will increase by 4% due to inflation.
@DefiSquared concludes by warning that tokens like WLD, designed from the beginning to have a predatory token economy that benefits the team and early investors, directly come from the SBF playbook. When insiders hedge their locked distributions through perpetual contracts/OTC at high valuations, they will directly become wealthy. Unfortunately, retail investors still believe they are beating this system and attempting to push up the price.
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