Worldcoin may experience "hyperinflation", and the selling trend may last for several months
Original title: "Giant Whale Trader: Worldcoin may experience "hyperinflation" after it is unlocked in July, and the Worldcoin selling wave may last for several months"
Original author: Natalia Wu, BlockTempo
Worldcoin, a cryptocurrency project backed by OpenAI CEO Sam Altman, has been on a downward trend since hitting a record high of $11.972 on March 10, even after the official announcement in April that it would launch a Layer 2 network that combines finance and identity verification.
Source: TradingView
Whale traders: Worldcoin may see months of selling
Many global users who have scanned their irises and are able to receive WLD airdrops on a regular basis are still looking forward to the subsequent performance of the Worldcoin bull market, but today (14) they were poured cold water by a whale trader.
@DefiSquared, the top trader on Bybit, wrote an article on X today saying that Worldcoin may actually become the largest wealth transfer in the entire cycle, but this wealth transfer is not in the form of universal basic income (UBI) as officials imply, "but goes into the pockets of the team and insiders", and criticized Worldcoin as a fraudulent project that actually has "no real connection with OpenAI".
He pointed out that as the amount of WLD unlocked continues to increase, hyperinflation will soon occur and a sell-off will break out in the next few months.
Worldcoin may experience hyperinflation
In this regard, he sorted out several data that will lead to hyperinflation and analyzed:
1. The current fully diluted valuation (FDV) of WLD is $60 billion, and its value is depreciating by 0.6% per day due to the issuance of grants and claims by operators (most of which are sold almost immediately according to on-chain analysis).
2. The Worldcoin Foundation just announced that they will sell $200 million worth of tokens to market makers at a discount; this is equivalent to selling an additional 18% of the total circulating supply to counterparties, and these 200 million tokens are derived from the "community" allocation.
3. Most importantly, with only 70 days left until VC and team unlocking begins, WLD supply will begin to expand at a rate of 4% per day (unlocking + emission). For insiders who want to cash out with $60 billion in FDV, they face nearly $50 million in uninterrupted selling pressure every day.
WLD will begin unlocking in late July, and WLD daily emissions will increase at an inflation rate of 4%. Source: @DefiSquared
Beware of low circulation/high FDV token economics
@DefiSquared finally warned that tokens like WLD were designed from the outset to have predatory token economies that favor the team and early investors, and the manipulative low circulation/high FDV design is straight out of the SBF playbook, and insiders get directly rich when they hedge locked-in allocations at high valuations through perpetual contracts/OTC; but sadly, retail investors still think they are beating the system and trying to drive up prices.
Sadly, this isn’t a new play in the industry, which helps ensure insiders exit with liquidity at eye-watering valuations.
