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Analysis: Worldcoin inflation rate may soar to 4% per day in the next 70 days, and a massive sell-off may occur at that time

CointimeCointime2024/05/14 02:52
By:Cointime

On May 14th, DeFi researcher @DefiSquared released an analysis on X platform, pointing out that Worldcoin may become the biggest wealth transfer event in this cycle. Unfortunately, this wealth transfer is not in the form of Universal Basic Income (UBI) as it claims, but rather into the pockets of the team and insiders. Although many people mistakenly believe that this project is related to OpenAI, there is actually no direct connection, and the upcoming token unlock may lead to massive sell-offs in the market.

According to @DefiSquared's analysis, the fully diluted valuation of Worldcoin is currently $60 billion, and its daily devaluation of 0.6% is due to the issuance of tokens for distribution and operator claims. In addition, the Worldcoin Foundation announced that it will sell an additional $200 million worth of tokens to trading companies, which is equivalent to 18% of the total circulating supply, and these tokens sold to the so-called "community" actually bring benefits to the foundation.

More importantly, there are only 70 days left before the start of the venture capital and team unlock period, at which time the supply of WLD will inflate by 4% daily due to unlocking and issuance, causing sustained selling pressure of nearly $50 million. @DefiSquared warns that this design is based on predatory token economics from the outset, intending to benefit the team and early investors, and retail investors often do not understand these backgrounds and mistakenly believe that they can counter the system by pushing up prices.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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