Worldcoin's valuation exceeded $90 billion, surpassing OpenAI's. Its limited supply and narrative appeal drove its surge, but a trend reversal seems imminent due to unnoticed emission increases, potentially setting a high never to be reached again.
Investors are eyeing the July unlock event, missing that Worldcoin is boosting its weekly user distributions. Starting this week, it's distributing over 10 million WLD (worth around $92 million) every two weeks, with plans to increase this rate. Last month, the circulating supply jumped by 25%, a trend expected to continue.
The Worldcoin foundation can sell tokens OTC from its treasury, likely at current high prices. A co-founder's past comment suggests they might intervene to prevent price spikes, posing a risk of capping gains abruptly.
With Worldcoin's market cap now at $1.4 billion, further gains are less likely, especially as its supply inflates weekly, contrary to many investors' expectations. The chance of buying at the peak is growing, with a significant price drop expected by July. History shows that most altcoins eventually fall by 90% or more, suggesting Worldcoin won't be an exception.
Despite the potential for shorting, such assets often outperform expectations before peaking. Holding a long position seems risky given the swift changes in Worldcoin's situation.
