Bitget Managing Director Gracy Chen: It is difficult for WorldCoin to maintain a high valuation for a long time

链捕手ChainCatcher · 2023-07-26T07:23:05.000Z

According to ChainCatcher news, Worldcoin recently announced its currency issuance. When many CEXs opened, the short-term price of the WLD token was about $1, and then there was a short-term rapid rise. Bitget market data shows that WLD rose to a maximum of $4.7 in a short period of time, an increase of more than 1,000% at one time. The total amount of Worldcoin (WLD) is 10 billion, and based on fully diluted valuation (FDV), this project reached a peak of $47 billion. However, the price of WLD subsequently plummeted. The reason was mainly due to flaws in the formulation of market-making terms and the token economy. Gracy Chen, managing director of Bitget, said: It is difficult for WorldCoin to maintain a high valuation for a long time. First, the market-making provisions are flawed. The market maker controls more than 96% of the circulating tokens. The market maker’s chips are so high that it has full control over the market and can determine the direction of the currency price. Because its cost is between 2-2.8 and the bottom price is 2.8 US dollars, any opening price higher than 2.8 is a profit opportunity for market makers to distribute chips. Secondly, NFT holders were not airdropped of tokens, triggering public opinion. Third, an excessively fast release curve and aggressive token release rate lead to excessive selling pressure. Finally, the project changed the token distribution plan. The proportion of tokens given by Worldcoin to Tools for Humanity (TFH) investors and teams in 2021 was 20%, and was later increased to 25%. In the changed token economy, there will be more Low-cost tokens flow to projects and investors rather than to the community.

According to ChainCatcher, Worldcoin recently announced the issuance of its token. When many CEXs opened, the price of WLD tokens was about $1 for a short period of time, and then it rose rapidly for a short period of time. Bitget market data showed that WLD rose to $4.7 for a short period of time, with an increase of more than 1000%.
The total amount of Worldcoin (WLD) is 10 billion. Based on the fully diluted valuation (FDV), the project peaked at $47 billion. However, the price of WLD subsequently plummeted, mainly due to flaws in the formulation of market-making terms and token economics.
Gracy Chen, managing director of Bitget, said: It is difficult for WorldCoin to maintain a high valuation for a long time. First, there are flaws in the market-making terms. Market makers control more than 96% of the circulating tokens. The high chips of market makers result in their complete manipulation of the market and can determine the direction of the currency price. Because its cost is 2-2.8 and the bottom price is 2.8 US dollars, any opening price above 2.8 is a profitable opportunity for market makers to distribute chips. Secondly, NFT holders were not airdropped tokens, which aroused public opinion. Third, the too fast release curve and the aggressive token release speed led to excessive selling pressure. Finally, the project changed the token distribution plan. In 2021, Worldcoin will give 20% of the tokens to the investors and team of Tools for Humanity (TFH), which will be increased to 25%. In the token economy after the change, more low-cost tokens will flow to the project parties and investors rather than the community.