- Worldcoin, the iris-based cryptocurrency, is poised to flood the crypto market with over $230 million new tokens this September.
- Addresses that have purchased WLD within the last six months have faced an average loss of more than 35%.
Worldcoin, the eye-scanning digital asset, is set to see token unlocks exceeding $230 million worth of new supply entering the crypto market in September. This is according to data from Token Unlocks, which also expects to see linear token unlocks from SOL, WLD, DOT, NEAR, and SEI.
By definition, token unlocks involve the release of tokens previously restricted under fundraising and other various agreements. Projects thoroughly plan these events to mitigate market pressure while preventing sharp price declines. However, this approach has drawbacks. Factors such as insufficient liquidity or early investor profit-taking can significantly influence a token’s value.
At the time of writing, WLD is swapping hands with $1.49, marking an 8.12% price decline in the last seven days. This price level has left the total market cap at $605,022,523 alongside a $90,423,171 24-hour trading volume.
The soon-to-come token unlock has brought with it potential selling pressure among investors. A massive supply of WRLD tokens cracking the market might incentivize investors to sell.
Additionally, highlighting past events, the Wolrdcoin price is deemed to experience declines in the next few weeks. Following the positive momentum surrounding Worldcoin, which was marked by its all-time high price of $11.74 on March 10, WLD was disrupted by the unlocking of tokens. This, combined with the frequently seen market volatility, has seen the eye-scanning digital asset plummet by an astonishing 87% from its all-time high.
WLD, the native token of the Worldcoin ecosystem, is facing increased pressure due to concerns over its rising supply and potential impact on its price. It’s worth remembering that Tools for Humanity (TFH), the developer behind Worldcoin, extended the lock-up period for WLD tokens allocated to team members and investors from the earlier set from 3 years to 5 years.
Also, the team announced a daily token release of 2 million tokens, contrary to the initial 3.3 million token unlocks. Considering all this, WLD has a significant pool of unlocked tokens that could flood the market and negatively affect its value in the future.
Becoming aware of this, one prominent crypto analyst has come forward, putting into light the risks associated with WRLD’s expanding supply, which could see the token’s price plummeting.
This is your your friendly reminder that @worldcoin is going to trend to zero. At a $15.1 BILLION dollar FDV, $WLD is exit liquidity for the goat farmers & VCs who are dumping on retail heads daily. $WLD supply inflates 9.56% every week$WLD supply inflates 40.95% every month… pic.twitter.com/noGNdbMZ8g
— CryptoCondom (@crypto_condom) August 28, 2024
It doesn’t end there; technical analysis has supported this concern. Data from Santiment’s 180-day Market Value to Realized Value (MVRV) ratio indicates that all addresses that purchased WLD in the past six months have experienced an average loss of over 35%.
Further analysis from IntoTheBlock’s Global In/Out of the Money metric reveals that over 95% of WLD holders are currently at a loss. This paints a grim picture of the token’s near-term prospects, as the rising supply and significant unrealized losses among holders could lead to increased selling pressure.
