Top Trader Criticizes Worldcoin Project's Tokenomics, Predicts Wealth Transfer to Insiders

Top Trader Criticizes Worldcoin Project’s Tokenomics, Predicts Wealth Transfer to Insiders

The Worldcoin project’s tokenomics will not result in the “greatest transfer of wealth” to the masses but rather a transfer to the “pockets of the Worldcoin team and insiders,” according to a top-ranked trader. The trader also accused project promoters of leveraging Open AI co-founder Sam Altman’s past endorsement of Worldcoin to bolster the token’s appeal.

Community Tokens Sold to ‘Adversarial Parties to Benefit the Foundation’

Defisquared, a top-ranked trader on Bybit, suggested that the Sam Altman-backed Worldcoin might orchestrate the “greatest transfer of wealth of this entire cycle.” However, the wealth is set to benefit the Worldcoin team and insiders. In a post on X dated May 13, Defisquared argued that many investors are unaware of how aggressively the project’s token, WLD, is likely to be sold off as “unlocks continue to ramp up in the coming months.” The trader noted that the WLD coin, with a fully diluted valuation of approximately $60 billion, is currently being devalued at a rate of 0.6% per day through grants and operator claims.

The trader also claimed that the Worldcoin Foundation’s reported plan to offload WLD tokens worth $200 million to trading firms highlights how insiders are determined to enrich themselves at the expense of ordinary token holders. According to Defisquared, the project’s so-called community tokens are set to be “sold to adversarial parties to benefit the foundation.”

The Sam Altman Endorsement Factor

The top-ranked trader identified the project’s predatory tokenomics, which resemble those of Sam Bankman-Fried, and their likely impact on WLD’s value as major concerns for token holders. “Most importantly, in just 70 days when VC and team unlocks begin vesting, WLD supply will begin inflating at 4% per day from unlocks and emissions. That’s nearly $50 million a day of nonstop sell pressure on a coin insiders are hoping to cash out at $60 billion FDV [fully diluted valuation],” the trader wrote on X.

Additionally, Defisquared accused promoters of the project of using Open AI co-founder Sam Altman’s past endorsement of Worldcoin to prop up the token. The trader stated that, given the background he laid out, it would take someone with a questionable moral compass to encourage “mom and pop retail” to acquire a “fake AI coin at $60 billion.”

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About Nicholas Edwards

Nicholas Edwards is a passionate writer with a keen interest in sports and business news. With a knack for delivering insightful and engaging content, Nicholas keeps his finger on the pulse of the latest developments in these dynamic fields. His enthusiasm for both sports and business shines through in his writing, making complex topics accessible to a wide audience. Whether it's dissecting the latest game-changing play or analyzing market trends, Nicholas brings a fresh perspective and a wealth of knowledge to his articles. Email @ admin@bollywoodfever.co.in

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