One of Bybit’s most successful traders and a top 10 DeBank wallet owner is concerned about a recent move by the Worldcoin Foundation and doubts that Sam Altman and OpenAI have anything to do with the controversial eye scanning protocol.
One of Bybit’s most successful traders and a top 10 DeBank wallet owner is concerned about a recent move by the Worldcoin Foundation and doubts that Sam Altman and OpenAI have anything to do with the controversial eye scanning protocol.
Crypto Whale Slams Worldcoin (WLD) for Erasing $200 Million from “Community Allocation”
While it is “the biggest wealth transfer of this entire cycle,” the Worldcoin (WLD) AI project is a deceptive scheme designed to enrich the team and insiders. such statement was created by DeFi Squared, a pseudonymous Bybit whale and experienced cryptocurrency expert.
Although at its current valuation, its inflation has reached 0.6% daily thanks to subsidy initiatives and operator complaints, the status quo can change quickly.
The Worldcoin Foundation has just announced that it will release another $200 million in WLD for trading companies. This move is expected to result in an additional 18% of all circulating supply being sold at a discount to dark market players.
This policy conflicts with the interests of retail owners and eye scanning program participants, as the majority of the released supply will be on sale immediately:
These $200 million in tokens come from the misleadingly named “Community” allocation of the WLD token supply, but are sold to adverse parties to benefit the foundation (…) Make no mistake: coins like this were designed from the beginning to have predatory effects. token economy that benefits the team and early investors, and in December the Foundation intentionally ended the market maker contract that prevented the price from rising with a low float.
Today, May 14, 2024, Worldcoin WLD fell below the psychologically crucial $5 level after a 15% drop overnight.
Is a staggering 4% daily inflation on the horizon for WLD?
Most importantly, starting in July, when VC and team unlocks begin vesting, the WLD supply will begin to inflate at 4% per day, DeFi Squared emphasizes.
This, in turn, will result in a daily selling pressure of $50 million on retail holders. Furthermore, the main narrative of Worldcoin (WLD), the role of OpenAI inventor Sam Altman, could be very overcommercialized:
Most retail buyers probably don’t even know that Sam Altman currently has no active stake in Worldcoin and is a completely separate entity with no relationship to OpenAI.
As Guru-Investingpreviously reported, thanks to an eccentric tokenomic design, Worldcoin (WLD) became the third-largest crypto by fully diluted valuation in March 2024.
