Top Trader Criticizes Worldcoin (WLD), Explains Reasons for Skepticism

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A well-known trader on Bybit and a top 10 wallet holder on DeBank is expressing concerns about Worldcoin Foundation’s recent decision and is skeptical that Sam Altman and OpenAI are involved in the controversial eye-scanning protocol.

Crypto whale criticizes Worldcoin (WLD) as $200 million disappears from “community allocation”

Described as “the most significant wealth transfer of this entire cycle,” the AI project Worldcoin (WLD) is believed to be a misleading scheme aimed at benefiting the team and insiders. This perspective was shared by DeFi Squared, an experienced cryptocurrency expert and anonymous Bybit whale.

Although the current inflation rate stands at 0.6% per day due to grant programs and operator statements, this status quo could change rapidly.

Recently, Worldcoin Foundation announced the release of an additional $200 million worth of WLD to trading firms. This decision is anticipated to result in a further 18% of the total circulating supply being sold at a discounted rate to unknown market participants.

This move goes against the interests of retail holders and participants in the eye-scanning program since most of the newly released supply will be immediately up for sale:

These $200 million worth of tokens come from the misleadingly labeled “Community” allocation of WLD token supply, yet are being sold to adversarial parties for the foundation’s benefit… Do not be misled – coins like this were designed with predatory tokenomics to benefit the team and early investors, and in December, the Foundation deliberately terminated the market maker contract that was preventing the price from rising on low float.

Today, on May 14, 2024, the value of Worldcoin’s WLD fell below the psychologically significant $5 mark following a 15% drop overnight.

Impressive 4% daily inflation approaching for WLD?

DeFi Squared emphasizes that starting this July, when VC and team unlocks commence vesting, the WLD supply will begin an inflation rate of 4% per day.

This development will create a daily selling pressure of $50 million on retail holders. Additionally, the main narrative of Worldcoin (WLD) – the association with OpenAI inventor Sam Altman – may be excessively marketed:

Most retail investors are likely unaware that Sam Altman is currently not actively involved with Worldcoin and that it is an entirely separate entity with no ties to OpenAI whatsoever.

As previously discussed by Ailtra, Worldcoin (WLD) became the third largest cryptocurrency by fully diluted valuation in March 2024 due to its unique tokenomic structure.

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