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Worldcoin token could become hyperinflationary in 70 days, says Crypto Trader
Cryptocurrency trader DeFiSquared has taken aim at Worldcoin’s “predatory tokenomics” which could potentially see WLD supply swell by 4% per day after tokens are unlocked and issuance begins.
According to one trader’s estimates, Worldcoin’s token supply could increase by 4% every day.
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Posted May 15, 2024 at 2:28pm EST.
Worldcoin, the biometric cryptography project developed by Tools for Humanity and founded by OpenAI’s Sam Altman, is often the subject of debate within the crypto community. This time the discussion is not about privacy concerns on its iris scanning technology, or a savage rally in its native token price due to unrelated OpenAI development.
A cryptocurrency trader has called out Worldcoin Foundation tokenomics that benefit the team and early investors at the expense of retail investors.
In a send on and emissions.
Worldcoin could realistically become the largest wealth transfer of this entire cycle. Unfortunately, this wealth transfer does not happen in the form of universal basic income as their mission suggests, but rather in the pockets of the team and insiders. I posted some… pic.twitter.com/Gr83mnt3Ms
— DeFi^2 (@DefiSquared) May 13, 2024
“That’s nearly $50 million a day of ongoing selling pressure on a coin that insiders hope to cash in at $60 billion FDV [fully diluted valuation],” he wrote.
DeFiSquared highlighted a recent announcement from the Worldcoin Foundation, noting that they would be selling an additional $200 million in tokens to trading companies, which it believes are being sold to adverse parties to benefit the Foundation despite the community allocation of Token Supply being named WLD.
Worldcoin did not immediately respond to a request for comment on this article.
Last month, the Worldcoin Foundation She said plans to gradually sell WLD tokens from its subsidiary World Assets through private placements to a select group of institutional trading firms outside the United States. According to the Foundation, this sale would help meet the “growing demand for Orb-verified World IDs.” ” and to support the growth of the network.
According to the top 10 holders of the WLD token they hold 91.5% of the total supply data by Lookonchain. These holders include the liquidators of the failed hedge fund Three Arrows Capital (3AC), which holds 75 million WLD tokens, and the bankruptcy estate FTX, which holds 25 million WLD tokens.