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Analysis: Worldcoin's inflation rate is expected to soar to 4% daily over the next 70 days, at which point there may be a large-scale sell-off

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2024-05-14 10:28:01
On May 14, DeFi researcher @DefiSquared published an analysis on the X platform, noting that Worldcoin may be the largest wealth transfer event of this cycle, but unfortunately, this wealth transfer is not in the form of Universal Basic Income (UBI) as its mission claims, but is transferred to the pockets of teams and insiders. Although many people mistakenly believe that the project is related to OpenAI, it is not actually directly related, and the upcoming token unlocking could lead to a massive sell-off in the market.
According to @DefiSquared's analysis, Worldcoin currently has a fully diluted valuation of $60 billion, resulting in a daily devaluation of 0.6% due to token offerings claimed by issuers and operators. Additionally, the Worldcoin Foundation has announced that it will sell an additional $200 million worth of tokens to trading companies, which is equivalent to 18% of the total supply in circulation. These tokens are sold to opposing parties, and the distribution called "community" actually benefits the foundation.
More critically, there are only 70 days until the start of the VC and team unlocking period, when the supply of WLDs will be inflated by 4% per day due to unlocking and issuance, resulting in continued selling pressure of nearly $50 million. @DefiSquared warns that this design is based on predatory token economics from the start, with the intention of benefiting teams and early investors, and retail investors often do not understand this context and mistakenly believe that they can counter the system by pushing up prices.