Original title: "Whale Trader: Worldcoin may experience "hyperinflation" after being unlocked in July, and the Worldcoin selling spree may last for several months"

Original author: Natalia Wu, BlockTempo

Worldcoin, a cryptocurrency project backed by OpenAI CEO Sam Altman, has been on a downward trend since hitting an all-time high of $11.972 on March 10, even after the official announcement in April that it would launch a Layer 2 network that combines finance and identity verification.

Source: TradingView

Whale traders: Worldcoin may see months of selling

Many global users who have scanned their irises and are able to receive WLD airdrops on a regular basis are still looking forward to the subsequent performance of the Worldcoin bull market, but today (14) they were poured cold water by a whale trader.

@DefiSquared, the top-ranked trader on Bybit, wrote an article on X today, saying that Worldcoin may actually become the largest wealth transfer in the entire cycle, but this wealth transfer is not in the form of universal basic income (UBI) as officials imply, "but goes into the pockets of the team and insiders", and criticized Worldcoin as a fraudulent project that actually has "no real connection with OpenAI".

He noted that as WLD unlocks continue to increase, hyperinflation will soon occur and a sell-off will occur in the coming months.

Worldcoin may experience hyperinflation

In this regard, he sorted out several data that will lead to hyperinflation and analyzed:

1. The current fully diluted valuation (FDV) of WLD is $60 billion, and its value is depreciating by 0.6% per day due to the issuance of grants and operators’ claims (most of which are sold almost immediately according to on-chain analysis).

2. The Worldcoin Foundation just announced that they will sell $200 million worth of tokens to market makers at a discount; this is equivalent to selling an additional 18% of the total circulating supply to counterparties, and these 200 million tokens are derived from the "community" allocation.

3. Most importantly, with only 70 days left until VC and team unlocking begins, WLD supply will begin to expand at a rate of 4% per day (unlocking + emission). For insiders who want to cash out at $60 billion in FDV, they face nearly $50 million in uninterrupted selling pressure every day.

WLD will begin unlocking in late July, and WLD daily emissions will increase at an inflation rate of 4%. Source: @DefiSquared

Beware of low circulation/high FDV token economics designs

@DefiSquared Final warning, tokens like WLD are designed from the start to have predatory token economics that favor teams and early investors, manipulative low float/high FDV designs straight out of the SBF playbook, when When insiders hedge their locked allocations at high valuations through perpetual contracts/OTC, they get directly rich; but sadly, retail investors still think they are beating the system and trying to push the price higher.

Sadly, this isn’t a new play in the industry, which helps ensure insiders exit with liquidity at eye-watering valuations.

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