According to TokenUnlocks data, in July 2024, projects such as DYDX, SUI, IO, XAI, IMX, APT, STRK, ARB, AXS, APE, PIXEL, WLD, and ALT carried out large-scale unlocking, with the unlocking amount exceeding US$10 million and the total unlocking value exceeding US$730 million.

Starting from July 24, WLD will usher in a large linear unlocking, with tokens worth 18 million US dollars unlocked daily for 730 days, including 8.88 million US dollars unlocked by the community, 5.14 million US dollars unlocked by the initial development team, and 3.62 million US dollars unlocked by investors.

It is reported that Worldcoin (WLD) is an open source protocol designed to help everyone participate in the global economy. It consists of World ID (a privacy-protecting digital identity), Worldcoin token (a token distributed to people for free worldwide) and World App (a fully self-hosted application that supports global payments, purchases and transfers). WLD is a native utility token with governance attributes.

1. Why is it said that WLD has unlocked a huge amount of funds, and the next step will be very "suspenseful"?

If a good project is played this way, it is equivalent to unlocking the total market value of nearly 5 RATS every month!

VC coins have infinite downward space, while meme coins have infinite upward space. Many players will interestingly say: I would choose the latter even if I use my feet, and fully circulate meme coins.

1. In 24 years, VC copycats also attracted large amounts of funds

Although this year is a bull market for BTC, it is impossible for BTC ETF funds to enter VC altcoins. Not only is there no incremental funds, but there are also continuous large-scale unlocking and blood-drawing every month. At the end of the month, WLD began to unlock and blood-draw at a rate of tens of millions of US dollars per day.

Those L2, arb, op, zk, and strk still have a huge circulating market value and unlocked market value. Moreover, they may be unlocked and dumped regularly every month. From a mathematical point of view, these coins must obtain a huge amount of capital increase just to balance the tens of millions of dollars per month of unlocking and dumping.

Buying these VC knockoffs is basically a completely unequal situation for retail investors.

This is a round of bizarre bull market that has never happened in the history of the cryptocurrency circle. The altcoins are constantly entering a deep bear market. If VC rebounds for a few days, it is only a chance to unlock the T, and it is impossible to reverse. If the project side has the money to pull the market, it would have issued a new one long ago. Now the only participants in the cryptocurrency circle are BTC and a very small number of memes with liquidity.

2. Locking up a huge amount of tokens may trigger a months-long sell-off

DefiSquared bluntly stated that Worldcoin may actually become the largest wealth transfer in the entire cycle. As the amount of WLD unlocked continues to increase, hyperinflation will soon occur and a sell-off will erupt in the next few months.

- Currently WLD’s fully diluted valuation (FDV) is $60 billion, with its value depreciating by 0.6% per day due to grants being issued and operators claiming them (most of which are sold almost immediately according to on-chain analysis).

-The Worldcoin Foundation just announced that they will be selling $200 million worth of tokens to market makers at a discount; this is equivalent to selling an additional 18% of the total circulating supply to counterparties, and these 200 million tokens are derived from the "community" allocation.

-On top of that, with only a few days left until VC and team unlocks begin, WLD supply will begin to inflate at a rate of 4% per day (unlocks + emissions). For insiders looking to cash out at $60 billion in FDV, there is nearly $50 million of non-stop selling pressure per day.

The $17 million release per day mentioned above may not tell the whole story. We should divide it into two parts: Part 1:

Investors: 1.35 billion; Team: 980 million; Reserves: 170 million;

Therefore, a total of 2.5 billion tokens will be unlocked over the next 2 years, about 3.47 million per day, or about $9 million per day.

3. Token economics with low circulation/high FDV design

Let’s first take a look at WLD’s original economic distribution model:

The initial supply of Worldcoin is capped at 10 billion for 15 years after the token launch (enforced by the WLD smart contract). After 15 years, if users can decide through governance whether to turn on inflation mode, the maximum annual inflation rate will be 1.5%. The maximum circulating supply at the initial launch will be 143 million WLD, of which 43 million WLD will be allocated to users who use Orb verification during the project's Pre-Launch phase, and 100 million will be loaned to market makers operating outside the United States (the loan matures in 3 months).

Token Allocation:

75% is allocated to the community, 9.8% to the team, 13.5% to TFH investors, and 1.7% to TFH reserves. A total of more than 43 million WLD tokens were allocated before the release. The circulation is not 43 million, but 143 million, with 100 million loaned to market makers. 75% of the community will be unlocked within 15 years.

Affected by this, the price of WLD has continued to fall recently, with the decline being significantly higher than other mainstream cryptocurrencies.

Influenced by the news of yesterday's huge unlocking, WLD fell 13% today, and the high point fell 80%! Who can handle such a huge amount? This drop will exceed AEVO! Continued unlocking and falling, plus the current total market value of 23.6 billion, the circulating market value of 600 million!

If calculated at the current price, that means $15 million worth of tokens will be unlocked every day! After 730 days! Even the leeks dare not take on this huge amount of dumping!

Why are tokens considered predatory?

Tokens like WLD were designed from the start to have predatory token economics that benefit teams and early investors, and the manipulative low-circulation/high-FDV design is straight out of the SBF playbook. They get directly rich when renewing contracts/OTC to hedge their locked allocations at high valuations; but sadly, retail investors still think they are beating the system and trying to push the price higher.

Sadly, this isn’t a new play in the industry, and it helps ensure insiders exit with liquidity at eye-watering valuations.

Second, apart from unlocking, what are the advantages of WLD?

1. Excellent team: The team behind WLD are all top talents in the blockchain industry, with rich experience and extraordinary creativity. Their vision and technical capabilities guarantee the continued growth of WLD in the future.

2. Revolutionary technology: WLD adopts the most cutting-edge blockchain technology, with ultra-fast transaction speed and extremely low transaction cost, which completely subverts the traditional financial system and truly realizes global barrier-free payment.

3. Large community: WLD has a large and active community, the number of users is growing rapidly, and everyone's confidence and support for WLD continues to push up its market value. The power of the community cannot be underestimated, they are the solid backing of WLD.

4. Huge investment: A large amount of capital is pouring into WLD. Major institutional investors and venture capital funds have invested in WLD, and the strong financial strength provides a strong guarantee for the development of WLD.

5. Unlimited application prospects: WLD is not only a cryptocurrency, but also a powerful ecosystem that covers multiple fields such as payment, lending, smart contracts, etc. Its application scenarios are extremely broad and its future prospects are unlimited.

6. Global recognition: WLD is rapidly gaining recognition and acceptance around the world, and more and more merchants and platforms are beginning to support WLD payments, which will greatly improve its liquidity and practicality.

7. Market unicorn: As a dark horse in the market, WLD’s performance was once amazing, with its market value and trading volume hitting new highs.

3. How to deal rationally with the huge selling pressure of WLD

First, let’s review the history of WLD price development:

The platform was launched on July 24, 2023. The highest online price was 5.29 and then washed to 0.97, which is nearly 4-5 times the depth. Basically, most people can't stand it.

It hit a new low of 0.97 on September 12, 2023 and then began to rise until March 9, 2024, a rise of more than 12 times in 177 days, with a peak of 11.97

From the highest point on March 9, 2024 to the current July 1, the retracement of 2.43 is nearly 5-6 times.......

Judging from the above coin price development, WLD's market makers are still very strong, and their market cleansing and price pull-ups are fierce enough!

From the perspective of token economy, the total amount is 10 billion and currently 258 million are in circulation. After July 24, 20 million worth of WLD will be released every day. Currently, the 24-hour transaction volume of BN is 59 million. Can the market take on the huge selling pressure?

In fact, unlocking seems to be bad news, and it may become an opportunity for project parties and market makers to ship goods. Usually, unlocking will first push up the price and then ship out. If the price keeps falling, it is definitely not what the dealer wants to see. The smartest way to ship is to pull up the price and ship out at the same time.

Therefore, I personally think that 2.43 is a good position. After all, the public chain will be launched in July-August. Those who understand will understand. Let’s stop here first, and we will continue to follow the WLD project in the future.