Worldcoin Price Surge Raises Concerns
The cryptocurrency Worldcoin (WLD) has experienced a significant surge in price, climbing 75% in the past five days, including a notable 38% increase in the last 24 hours. DeFi^2 (@DefiSquared), a top trader on Bybit and ranked in the top 10 wallets on DeBank, has raised alarm bells about potential market manipulation surrounding this price movement in the lead-up to insider unlocks this year.
The Worldcoin Cash Grab
DeFi^2 has revealed disturbing details about Worldcoin’s market activities ahead of planned insider token unlocks. With only 2.7% of WLD’s total supply currently circulating, concerns have been raised about the project’s staggering $30 billion fully diluted valuation (FDV).
- Worldcoin launched with a 1.4% circulating supply, with 100 million tokens allocated to market makers with call options to prevent price spikes.
- A decision not to renew the market maker contract on December 16th resulted in a price surge as the call option was removed, and 25 million tokens were withdrawn from circulation.
Despite claims to the contrary, Worldcoin’s strategic decisions regarding tokenomics and market maker contracts have significantly influenced price movements, casting doubt on the project’s transparency.
Market Manipulation
Although Worldcoin was designed to support universal basic income (UBI), insiders appear to be the primary beneficiaries. Over 60% of the circulating supply is expected to be emitted to team members and venture capitalists within a year, overshadowing the allocation to UBI recipients.
- Orb Operators contributing to the circulating supply have reportedly transferred substantial amounts of WLD to exchanges during price spikes.
- Retail investors, particularly in Korea, hold a significant portion of the circulating supply, potentially unaware of the complexities at play and the inflated valuation.
DeFi^2 highlights the manipulative tactics employed by Worldcoin to prop up token prices artificially, warning investors to be cautious as insider unlocks approach, expressing intentions to take a short position on WLD post-unlocks.
Hot Take: Be Vigilant Against Market Manipulation
As a cryptocurrency enthusiast, it is essential to remain vigilant against potential market manipulation in the crypto space. Due diligence and awareness of project dynamics, particularly in instances where significant price surges occur, can safeguard your investments and mitigate risks associated with insider activities.
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