TL;DR
- A prominent Bybit trader accuses the Worldcoin team of system manipulation and predatory practices in their tokenomics.
- It is noted that Worldcoin could experience significant inflation due to unlocks and token issuances.
- The trader warns of possible risks for investors due to the massive sale of tokens and the disconnection of the project with OpenAI.
The cryptocurrency world is once again rocked by accusations of manipulation and questionable practices.
A well-known trader on the Bybit platform, under the alias DeFi^2, has raised a red flag over the Worldcoin project, accusing the team behind this token of designing a system that primarily benefits insiders and the development team to the detriment of ordinary investors.
Worldcoin realistically might become the greatest transfer of wealth of this entire cycle. Unfortunately, this wealth transfer isn't in the form of universal basic income as their mission suggests, but instead to the pockets of the team and insiders. I’ve posted a bit on it… pic.twitter.com/Gr83mnt3Ms
— DeFi^2 (@DefiSquared) May 13, 2024
According to DeFi^2, Worldcoin could be a major source of wealth transfer in the next crypto market bull cycle.
However, this wealth would not materialize as a universal basic income, as the project’s mission suggests, but would instead end up in the hands of the team and early investors.
The central allegation centers on manipulation of the system and massive token selling, especially as more tokens are unlocked and issued to the market.
The numbers provided by DeFi^2 on Worldcoin are shocking
At Worldcoin‘s current $60 billion valuation, the token experiences a daily devaluation of 0.6% due to grant issuances and claims from operators that, according to on-chain analysis, are mostly sold immediately.
In addition, the sale of $200 million more in tokens to commercial firms has been announced, representing an additional 18% of the supply in circulation and being sold at a discount.
Most worrying is the projected token inflation when the venture capital (VC) and team tokens are unlocked in just 70 days.
WLD’s supply will begin to inflate at a rate of 4% DAILY due to unlocks and issuances, generating selling pressure of nearly $50 million a day on a token that insiders expect to trade at a fully diluted valuation of $60 billion.
These practices, according to DeFi^2, are designed to benefit the team and early investors.
The project’s disconnection with OpenAI is also highlighted as a point of concern, as many investors could be operating under incorrect information.
This situation is a reminder of the importance of doing thorough research before investing in any crypto project and being aware of possible unethical practices in the market.
