DeFi
This AI Altcoin’s “Predatory Tokenomics” Will Line the Pockets of Team and Insiders, Trader Warns
Renowned Bybit Trader Challenge^2 raised concerns regarding Worldcoin (CRYPTO: WLD) long-term viability and potential for aggressive short-selling, arguing that Worldcoin’s “universal basic income” mission statement masks a transfer of wealth for the benefit of insiders.
What happened: According to the merchant analysisthe coin could face a bleak future:
“Realistically, Worldcoin could become the largest wealth transfer of this entire cycle. Unfortunately, this transfer of wealth does not take the form of a universal basic income as their mission suggests, but rather into the pockets of the team and insiders,” expressed DeFi^2 in a cautionary message .
This criticism highlights growing skepticism about the project’s objectives and its operational transparency.
DeFi^2 outlined specific details that suggest the possibility of aggressive short selling due to tokenomics and internal project activities.
“At its current valuation of $60 billion fully diluted, it is currently being devalued by 0.6% per day due to emissions from subsidy and operator claims,” he noted, emphasizing that these claims are for most sold immediately after publication, as the report indicates. chain analysis.
Furthermore, the Worldcoin FoundationThe recent decision to sell $200 million worth of tokens to trading companies, representing 18% of the circulating supply, is raising concerns about potential value dilution for existing holders.
These tokens, coming from what is ambiguously called “community” allocation, appear to be strategically offloaded to entities that might not prioritize community interests.
Read also: Return of Keith Gill’s ‘Roaring Kitty’ Sparks 1,400% Surge in Kitty-Themed Coins
The worry doesn’t stop there, as DeFi^2 warns of a coming period where venture capital and teams unlock what could significantly increase supply: “In just 70 days…the supply of WLD will start to grow by 4% PER DAY from unlocks + emissions. .”
This could result in continued selling pressure of nearly $50 million per day, a scenario that could devastate the coin’s market value.
Accusations of predatory financial arrangements have been harshly made, comparing Worldcoin’s strategies to those previously seen in notorious market manipulation.
“The manipulative low float/high FDV design is straight out of the SBF playbook and directly enriches insiders as they hedge their locked allocations at high valuations before unlocking via perps/OTC,” DeFi^2 noted.
Most worrying is the misconception that retail investors have about project affiliations and approval.
Many are unaware that Sam Altman, often associated with major technological innovations, has no active involvement in Worldcoin, which also has no connection to OpenAI.
And after: As the cryptocurrency community prepares for these developments, these concerns will likely be the subject of intense discussion at the upcoming Benzinga show. The future of digital assets event on November 19.
This event will provide a platform for experts to delve deeper into the impacts of market strategies such as those employed by Worldcoin, exploring the broader implications for investors and the the integrity of the digital asset space.
Read next: Arthur Hayes: “Major economies will print even more money” over the next 24 months
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