simply put
The newly launched Worldcoin (WLD) token has dropped 40% amid concerns over its token’s economic model and privacy issues.
Worldcoin’s token economic model plans to unlock the majority of its 10 billion WLD tokens over the next 15 years.
Nearly 10% of the supply is allocated to early investors such as a16z, who led the ICO.
Newly launched Worldcoin token WLD has found itself in trouble as investors delve deeper into its token economic model. The project has also drawn considerable criticism over issues such as privacy concerns.
Less than 24 hours after Worldcoin went online, it has already caused a whirlpool of negative sentiment in the crypto community. Additionally, its native token WLD has sold off 40% due to issues with the project’s token economics.
World Coin Token Economics in the Spotlight
The high-profile WorldCoin project went live on July 24. It uses iris scanning hardware and technology to verify identity and rewards participants with its native token.
As BeInCrypto reported shortly after its launch, it was heavily criticized for privacy concerns and its "Orwellian" approach to verifying identities.
The project is currently facing criticism for its token economic model, in which the majority of the 10 billion WLD tokens will be unlocked over the next 15 years.
According to Token Unlocks, three-quarters of the supply will be made available to the community. This is much better than some DeFi protocols, which allocate the majority of tokens to venture capitalists and insiders. However, its definition of “community” includes governance and is very vague.
Additionally, nearly 10% of the supply is allocated to early investors such as a16z, who dominated the ICO.
Additionally, tokens from major projects that unlock tokens on a regular basis are facing significant selling pressure.
Furthermore, senior analyst Dylan LeClair noted the similarities between its token distribution model and other platforms:
“Worldcoin took a page from the SBF Solana ecological playbook and launched and issued micro-junkcoins accounting for 1% of the total circulation. The fully diluted market cap is $22.8 billion. Ouch.”
The irony continues, "This Ponzi scheme is still at the bottom," he added. "Ignore the venture capitalists who are ready to throw themselves at you (again). This time it's different."
Opinions and WLD Price Dumping
The founder of security agency SlowMist said that if Worldcoin succeeds, it will be an "evil product." He added that it was possible for hackers to create a portrait by hashing the information.
Dr. Jeff Ross, founder and CEO of Vailshire Capital Management, conducted a poll asking WorldCoin “will it be the biggest crypto mover by far?” At press time, 962 voters Nearly 63% of people agreed.
Less than 24 hours after launch, you can already see the initial pump and dump of the Worldcoin token.
WLD surged to a peak of $3.30 just hours after it went live. However, the coin has plummeted 41.3% since then, falling to $1.97 at the time of writing, according to CoinGecko data.