As a researcher with a background in cryptocurrency and blockchain technology, I’ve closely followed the developments surrounding Worldcoin (WLD) and have been particularly intrigued by the recent price plunge. The 9% decline within 24 hours, coupled with DeFi^2’s critical analysis, has raised some serious concerns about the token’s underlying mechanics and potential for future inflationary pressures.
As a researcher examining the cryptocurrency market, I’ve noticed that Worldcoin (WLD) experienced a significant price drop of almost 9% in a single day, landing at approximately $5.20. This downturn coincides with a critical analysis released by DeFi^2 (@DefiSquared), who holds the top trader position on Bybit. The analysis brought attention to potential inflationary pressures and questionable marketing tactics surrounding Worldcoin.
Significantly, following OpenAI’s announcement on Monday about their upcoming advanced AI model, GPT-4, named “OpenAI’s latest breakthrough in AI,” the Worldcoin (WLD) price took a sharp dip. Despite WLD typically responding positively to such announcements from OpenAI, this time around the market showed a contrasting reaction. This new model, capable of carrying out natural and conversational voice interactions as well as seamlessly transitioning between text and images, has generated widespread excitement within the industry.
Why Worldcoin Is Plummeting
In a discussion on X, DeFi^2 explained in detail the reasons for Worldcoin’s quick loss of value as revealed in his analysis. He highlighted that this cryptocurrency is experiencing substantial daily depreciation due to two primary causes: the token’s emission process and strategic selling actions taken by the Worldcoin Foundation.
As an analyst, I’ve observed that the value of these tokens is decreasing by 0.6% every day. This decline can be attributed to the emissions resulting from grant and operator claims. Notably, according to DeFi^2’s analysis of on-chain data, a significant portion of these Worldcoin tokens are sold off right after issuance, which exerts additional downward pressure on their price.
The Worldcoin Foundation’s announcement of selling $200 million in Worldcoin tokens to trading firms brings up more supply concerns. This action will increase the circulating supply by approximately 18%. DeFi^2 expressed concern over this decision, as the tokens labeled as “Community” allocation are being sold at a discounted price to entities that might not prioritize the wider community’s interests. This could potentially decrease the value for existing token holders.
The major concern raised by DeFi^2 relates to the imminent future, specifically when releases for venture capital and team tokens are scheduled. He predicts that within two months, the Worldcoin supply will rapidly increase by 4% every day due to these upcoming unlocks as well as continuous emissions. This situation could lead to approximately $50 million in sell pressure daily, significantly influencing the token’s price and stability.
In clear and natural language: DeFi^2’s examination didn’t flinch from tackling the misunderstandings concerning Worldcoin’s connection to well-known tech figures and corporations. He made it plain that Sam Altman, recognized for his part in OpenAI, doesn’t have any current engagement with Worldcoin. Instead, Worldcoin functions independently as a distinct entity. This explanation helps correct a widespread misconception that could have influenced investors’ perceptions about the token’s origin and support.
As a researcher, I’ve come across DeFi’s critique of Worldcoin’s tokenomics, drawing parallels to what he considers “predatory” economic models. These models are designed to favor early investors and insiders over general retail investors, resulting in disproportionate gains for the former group. The history of the crypto industry reveals similar tactics, where manipulation of token supply and market conditions have led to substantial profits for insiders, while leaving regular investors vulnerable to heightened risks and potential losses.
“Worldcoin could potentially turn out to be the most significant wealth redistribution event during this cryptocurrency cycle, despite not being in the form of universal basic income as advertised. Regrettably, the team and insiders appear to be the primary beneficiaries of this financial shift.”
The crypto community is currently processing DeFi^2’s severe cautionary statements, leading to a significant increase in trading volume amounting to $666 million (marking a 104% surge over the past day). It is reasonable to assume that investors and speculators are reevaluating their investments in Worldcoin in response to these disclosures. At present, WLD is priced at $5.24 per unit.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-05-14 11:10