Since March, the price of WLD has continued to decline, from a high of nearly 12 to a low of 1.72. This trend is not only affected by the overall market downturn, but the main reason is that WLD faces a large amount of continuous token unlocking pressure.
However, WLD has recently made two consecutive moves to modify the token release rules, causing its price to soar. So, what impact do these two modifications have on the continued unlocking?
WLD will be launched on July 14, 2023, with a total of 10 billion and an initial circulation of 143 million. Among them, after the 100 million loan tokens of market makers are deducted, the actual initial circulation is 43 million.
In the first three years, the unlocking volume of WLD was particularly large. In the first year, all community tokens were unlocked, and from the second year, institutional unlocking was opened, which lasted for two years.
This month, WLD modified the token release rules twice:
On July 10, it was announced that the claim period for unclaimed WLD reserved tokens would be extended by one year. This modification allows the WLD tokens that were originally unavailable to re-enter the market, which actually increases the selling pressure of WLD in the next year.
2. On July 17, another announcement was issued that the token lock-up period for TFH's early Worldcoin contributors will be extended. Among them, the token unlocking period for 80% of TFH investors and team members was adjusted from two years to four years. According to the original release plan, the TFH team and investors will unlock 3.19 million tokens per day, and the daily unlocking amount will be reduced to 1.914 million after the modification.
However, the actual unlocking amount has dropped from 6.62 million per day to about 5.4 million, and there has been no change in order of magnitude.
Although this token release modification did not substantially reverse the continuous selling pressure faced by WLD, the short-term price of WLD has skyrocketed since the announcement was released. The project party has demonstrated its news trading capabilities many times in the past year, so in terms of operation, it should only be used as a short-term idea, and it is not recommended as a long-term position.
In addition, Worldcoin announced in April of the first half of the year that it will launch its own blockchain "World Chain". If its specific rules give WLD a practical use case, the fundamentals will reverse again, which is worth paying attention to in the future. There is still room for speculation in this area.
Short-term operation of WLD is still valuable, but only in the short term. Because although the unlocking amount has decreased, it is not completely unlocked, and there will always be a part of it thrown into the market.The circulation of WLD is quite large, so it needs to be considered carefully.
