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***Recalling the previous post about the $W (WormHole) purchase plan***
The price of $W has dropped 90% from the peak and is a product that makes many Vietnamese people lose money. Going around the brand groups, I only hear curses and no compliments! 😖
👉However, my point of view is always not to hate any project too much, and not to love any project blindly. We are investors, as long as there is a prospect of profit, we should not ignore it!
Below I will note down both the ADVANTAGES and DISADVANTAGES of W, for those of you who are considering getting on board, please read carefully to make a final decision!
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DISADVANTAGES:
😎I will talk about the disadvantages first, because in the current market, capital preservation should be prioritized over fomo.
WormHole's big backer is having problems:
Jump Trading is a big backer of $W, you guys probably know this. In early 2022, the Wormhole bridge was hacked for more than 300 million USD (a record at that time), it was Jump who stepped in to help the project develop to the present.
However, Jump Trading and Jump Crypto are currently facing many problems:
- Jump Crypto President Resigns After 6 Years
- Investigated by CFTC for operations
- FTX debt of more than 250 million USD SRM tokens but not paid
- There are signs of a strong ETH sell-off in the past 2 weeks.
In response to the negative news, many projects in Jump's portfolio were also sold off, including W.
Just unlocked a large amount of tokens:
W topped the unlock list in August with up to $151 million worth of unlocked tokens, causing the circulating supply to skyrocket by 33.3%. In other words, without the W price dropping much, the value of your assets has already decreased due to token dilution.
However, the positive point is that after the unlock on August 3, it will not be until April 2025 that W will have the next big unlock related to Team and Investor tokens.
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ADVANTAGE:
Raised large capital from many famous funds:
According to the project announcement, WormHole has raised capital from funds such as Jump Trading, Coinbase Ventures, Multicoin Capital and Arrington XRP Capital... These are all top funds in the current market, including 2 Tier1 funds.
The total amount of capital raised reached 225 million USD (the amount received in each round was not specified), and the valuation reached 2.5 billion USD.
In other words, W's current FDV is lower than the fund's valuation. However, please note that funds can cross-sell tokens to each other in the form of token lock contracts, causing the capital raised to be inflated compared to reality.
Build on Solana:
I have said many times that the SOL ecosystem is and will be the force of this season. It is no coincidence that Binance has dedicated a Zone for SOL tokens, and at the same time selected a full list of important projects in the system.
Monopolizing the cross-chain segment on the SOL system is a big plus for WormHole. Currently, those who are at the top of W can send staking to win future airdrops, helping them get back to shore faster.
Chart has growth prospects
The fact that W has decreased by nearly 90%, the price is almost divided by 10 from the peak is a good opportunity for those who still hold USDT. In addition, the W chart on the 1D frame also forms a falling wedge pattern. In case the wedge is broken, W can enter a strong growth phase.
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Currently $W is priced at $0.19, has a market cap of $500 million and a FDV of $1.9 billion.
Do you think the current valuation is reasonable to buy W for long-term goals?
In case Bitcoin continues to fall, is it too deep to set my buy limit at 0.1 USD? 😅😅😅😅
