This AI Altcoin’s ‘Predatory Tokenomics’ Will Line Team and Insiders’ Pockets, Trader Warns

Renowned Bybit trader DeFi^2 raised concerns about The one from Worldcoin (CRYPTO: WLD) long-term profitability and potential for aggressive short selling, arguing that Worldcoin’s “universal basic income” mission masks a transfer of wealth to the benefit of insiders.

What happened: According to the dealer analysesthe coin may face a bleak future:

“Worldcoin could realistically become the largest wealth transfer of this entire cycle. Unfortunately, this wealth transfer is not in the form of universal basic income as their mission suggests, but rather in the pockets of the team and insiders,” expressed DeFi^2 in a warning post.

This criticism highlights a 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 the project’s tokenomics and internal activities.

“At its current fully diluted valuation of $60 billion, right now it is being devalued by 0.6% per day from grant issuance and operator claims,” he noted, noting that these claims are mostly sold immediately after the release, as indicated by on-chain analysis.

Furthermore, the Worldcoin FoundationTrump’s recent decision to sell $200 million worth of tokens to trading firms, or 18% of the circulating supply, raises alarms about potential value dilution for existing holders.

These tokens, coming from what is ambiguously called the “Community” allocation, appear to be strategically dumped on entities that may not prioritize community interests.

Read also: The Return of Keith Gill’s “Roaring Kitty” Sparks a 1,400% Surge of Kitty-Themed Meme Coins

The concern doesn’t stop there, as DeFi^2 warns of an impending period where venture capital and team unlocks could dramatically increase supply: “In just 70 days… WLD supply will begin to inflate by 4% PER DAY from unlocks + emissions.”

This could translate into nearly $50 million per day of continued selling pressure, a scenario that could devastate the coin’s market value.

Accusations of predatory financial deals have been made harshly, comparing Worldcoin’s strategies to those previously seen in infamous market manipulations.

“The manipulative low float/high FDV design comes directly from the SBF playbook and directly enriches insiders as they protect their allocations locked at high pre-unlock valuations via perps/OTC,” DeFi^2 noted.

Most worrying is retail investors’ misconceptions regarding project affiliations and approvals.

Many are unaware that Sam Altman, often associated with major technological innovations, has no active involvement with Worldcoin, which also has no connection to OpenAI.

What’s next: As the cryptocurrency community prepares for these developments, these concerns will likely be a topic of intense discussion at the next Benzinga’s The future of digital assets event on November 19th.

This event will provide experts with a platform to delve deeper into the impacts of market strategies such as those employed by Worldcoin, exploring the broader implications for investors and the market. 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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