Since March, the trend of WLD (Worldcoin) has been sluggish, with the unit price plummeting from nearly 12 USDT at its peak to a low of 1.72 USDT. This decline is not only affected by the overall market downturn, but more importantly, the WLD token faces a large and continuous unlocking pressure. However, Worldcoin has recently adjusted the token release rules twice in a row, which has brought a glimmer of hope to the market, and the token price has soared by 60% in a short period of time.
WLD Token Unlock Background
WLD tokens were officially launched on July 14, 2023, with an initial circulation of 143 million, including 100 million loans from market makers. The actual circulation is only 43 million. After the token is issued, its release speed is particularly rapid in the first three years. In the first year, community tokens are mainly unlocked, and from the second year onwards, institutional unlocking is started, which lasts for two years. Currently, WLD's circulation has grown significantly, with an inflation rate as high as 541%, showing a sharp expansion of its liquidity.
Impact of Unlocking Rule Adjustments
Faced with huge selling pressure, Worldcoin made two key token release rule adjustments. First, on July 10, Worldcoin announced that it would extend the claim period for unclaimed WLD reserve tokens by one year. Although this move may seem to increase selling pressure, it actually provides more users with the opportunity to participate in Worldcoin, regardless of whether they own an Orb device. This change affected about 6 million users and allowed WLD that was previously out of circulation to re-enter the market.
Subsequently, Worldcoin made another move to significantly extend the token lock-up period for early contributors to Tools for Humanity (TFH). Specifically, the token unlocking period for 80% of TFH investors and team members was adjusted from two years to four years. This adjustment directly reduced the daily token unlocking volume from the original 3.19 million per day to about 1.914 million (the announcement data was about 2 million per day). Overall, the token unlocking volume dropped from 6.62 million per day to about 5.4 million. Although the change did not reach an order of magnitude, it has had a positive impact on market sentiment.
Market reaction and future outlook
Although the adjustment of the token release rules did not fundamentally solve the problem of huge selling pressure on WLD, the price of WLD has increased significantly by 35% since the announcement. This performance once again verified Worldcoin's ability in news trading, and the market showed a "long short, short long" trend in the short term. However, investors still need to remain cautious, because the reduction in unlocking volume does not mean that the selling pressure has completely disappeared, and the liquidity of WLD is still large and complex.
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