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'Fake AI Coin': Worldcoin (WLD) Roasted by Top Trader, Here's Why

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Tue, 14/05/2024 - 15:30
'Fake AI Coin': Worldcoin (WLD) Roasted by Top Trader, Here's Why
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One of the most successful traders on Bybit and DeBank's top 10 wallet owner is concerned about a recent move by Worldcoin Foundation and doubts that Sam Altman and OpenAI have anything to do with the controversial eye-scanning protocol.

Crypto whale slams Worldcoin (WLD) as $200 million erased from "community allocation"

While being "the greatest transfer of wealth of this entire cycle," AI project Worldcoin (WLD) is a deceptive scheme designed to enrich team and insiders. Such a statement was made by DeFi Squared, a pseudonymous Bybit whale and seasoned cryptocurrency expert.

While at its current valuation, its inflation has reached 0.6% a day thanks to grant initiatives and operator claims, the status quo can change quickly.

Worldcoin Foundation just announced that it will be releasing another $200 million worth of WLD to trading firms. This move is expected to generate an additional 18% of the entire circulating supply being sold at a discount to obscure market actors.

This politics comes in conflict with the interests of retail holders and eye-scanning program participants as the majority of the released supply will be for sale immediately:

These $200M of tokens come from the deceptively named "Community" allocation of WLD token supply, yet are being sold to adversarial parties to benefit the foundation (...) Make no mistake- coins like this were designed from the start to have predatory tokenomics that benefit the team and early investors, and back in December the Foundation intentionally ended the market maker contract that was preventing the price from squeezing higher on low float.

Today, on May 14, 2024, Worldcoin's WLD dropped below the psychologically crucial level of $5 after a 15% overnight plunge. 

Jaw-dropping 4% per day inflation in sight for WLD?

Most importantly, as soon as this July, when VC and team unlocks begin vesting, the WLD supply will begin inflating at 4% per day, DeFi Squared stresses. 

This, in turn, will result in $50 million daily selling pressure on retail holders. Also, Worldcoin's (WLD) main narrative - the role of OpenAI inventor Sam Altman - might be heavily over-marketed:

Most retail buyers are likely not even aware that Sam Altman currently has no active involvement in Worldcoin and that it's a completely disjoint entity with no relation to OpenAI at all.

As covered by U.Today previously, thanks to an eccentric tokenomic design, Worldcoin (WLD) became the third largest crypto by fully diluted valuation in March 2024.

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