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LUCKNOW (CoinChapter.com) — The Worldcoin price has taken a nosedive, plummeting by nearly 9% in just 24 hours. Its value settled at around $5.20. This decline comes as the top trader on the crypto exchange Bybit, DeFi^2 (@DefiSquared), raised concerns about potential inflationary pressures and misleading marketing surrounding Worldcoin (WLD) – saying that it has no ties to OpenAI.
Why Worldcoin Price Dropped Despite OpenAI’s GPT-4o Announcement?
The Worldcoin price plunge occurred just after OpenAI announced its plans to launch the AI model GPT-4o on Monday. Typically, Worldcoin would benefit from such OpenAI announcements. However, this time, the WLD price took a hit, leading to speculation about the project’s independence from OpenAI.
So, what’s going on? According to DeFi^2, the problem lies in how Worldcoin is structured and how its tokens are being distributed.
No Ties to OpenAI — Worldcoin Operates Independently
First of all, DeFi^2 says that Worldcoin has no direct connection to OpenAI, despite what some people might think. He clarified that Sam Altman, known for his role with OpenAI, has no active involvement with Worldcoin. Both of them operate as a completely separate entity. This means that any news from OpenAI shouldn’t really affect Worldcoin’s price.
In his analysis shared on X, DeFi^2 expounded on the mechanics behind the rapid devaluation of the Worldcoin price. He emphasized that the token is suffering from significant daily depreciation due to both emissions and strategic sales maneuvers. These two reasons deny the direct ties of Worldcoin to OpenAI.
Secondly, DeFi^2 explains that Worldcoin recently released a lot of new tokens into circulation. This caused the value of the token to go down. DeFi^2 observed that the tokens issued for grants and operator claims are predominantly sold off almost immediately upon issuance. This added downward pressure on the Worldcoin price.
Worldcoin Foundation’s $200 Million Token Sale Gone Awry?
Further exacerbating the concerns about the Worldcoin price, the Worldcoin Foundation recently declared its intention to offload $200 million worth of Worldcoin tokens to trading firms. DeFi^2 criticized this decision, saying that the Worldcoin Foundation is selling these tokens to trading firms at a discount. They are not prioritizing the broader community’s interests; instead, they are diluting the value for existing holders.
Additionally, DeFi^2 warns that in about 70 days, the Worldcoin foundation will unlock even more tokens into circulation for venture capitalists and the Worldcoin team. This could cause the supply of WLD tokens to increase by 4% every day, which would put a lot of downward pressure on the price. This scenario could put nearly $50 million worth of sales pressure daily. This might impact the token’s market price and stability further.
Tokenomics Trouble — DeFi^2 Exposes Worldcoin’s Predatory Playbook
Moreover, DeFi^2 drew parallels between Worldcoin’s tokenomics and what he describes as “predatory” economic models designed to benefit early investors and insiders disproportionately.
DeFi^2 believes that Worldcoin’s token structure is set up in a way that benefits early investors and insiders while potentially leaving regular investors holding tokens that are worth much less. He compares it to other crypto projects that have been accused of similar practices, where insiders make a lot of money while ordinary investors end up losing out.
After DeFi^2’s stark warnings and revelation of no ties to OpenAI, the immediate reaction has been a surge in trading activity for Worldcoin. Investors and speculators are reassessing their positions in light of these revelations. At press time, WLD price is $5, with trading volume spiking 104% to $666 million in the last 24 hours.
WLD/USD Daily Price Chart. Source: CoinMarketCap
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