According to DeFi^2, a well-ranked trader on Bybit, Worldcoin might become the largest wealth transfer in the next bull cycle.
In a post on X, the prominent trader claimed that this wealth transfer would benefit the Worldcoin team and insiders at the expense of the public. He cited the project's upcoming WLD token unlock and vesting program as the primary mechanism.
DeFi^2 began by criticizing Worldcoin as a misleading project with no actual connection to OpenAI, contrary to popular belief. He accused the Worldcoin team of planning to sell off the project's native coin, WLD, as token unlocks increase in the coming months, which he believes will lead to hyperinflation.
The trader highlighted that WLD is currently experiencing a daily devaluation rate of 0.6% due to grant emissions and operator claims. He also noted that the Worldcoin Foundation announced plans to sell an additional $200 million worth of WLD tokens to trading firms, increasing the circulating supply by 18% at a discounted price.
Furthermore, DeFi^2 pointed out that in just 70 days, when venture capital and team unlocks begin vesting, the WLD supply will inflate by 4% per day due to unlocks and emissions. He calculated that this would result in $50 million in daily sell pressure, with insiders aiming to cash out at a $60 billion fully diluted valuation (FDV).
The trader warned his followers that coins like WLD are designed with predatory tokenomics to benefit the team and early investors. He accused the Worldcoin Foundation of deliberately ending the market maker contract in December, which prevented the price from increasing on a low float. He compared the Worldcoin team's actions to those of Sam Bankman-Fried, alleging they manipulate the system to enrich insiders.
May 2024, Cryptoniteuae