Is WLD Token Flashing Signs of Pump and Dump? Concerns Raised on Circulating Supply
Is WLD biggest pump and dump story ever? | Credit: Shutterstock
- The biometric blockchain project from Worldcoin is off to a rocky start due to its low market capitalization compared to its high valuation
- Only 1% of the WLD token is in circulation; hence the fluctuations
- Critics have reservations about Worldcoin’s centralized Orb and identity verification method, which uses eye scanning
The eagerly awaited Worldcoin (WLD) project has encountered difficulties and could be accused of a pump-and-dump scheme. In the market, the token boasted a ground-breaking biometric proof of a personhood-based blockchain network.
Investors are now concerned that the team and the first investors hold a sizeable amount of the WLD tokens, despite the project having a spectacular, fully diluted valuation of $20 billion. Instead, the project’s current market capitalization is a pitiful $227 million.
The WLD project continues to be adamant about growing its network by luring more people to secure future growth despite encountering obstacles such as pump-and-dump scheme accusations.
The current headwinds, however, might potentially cause the value of the WLD token to decrease even further if they are not appropriately handled.
Worldcoin (WLD) Market Outlook
Similar to the story of Solana and FTX, the Worldcoin project’s trajectory saw an initial rise in value followed by a substantial decline. Only 1% of the total quantity is currently in use, which leads crypto experts to hypothesize that the price of WLD may fall over time as more venture capitalists unlock their holdings.
WLD is currently trading at $2.12, down 16.46% from where it was earlier in the day. WLD’s one-day performance surpasses that of Bitcoin, Ether, XRP, and the rest of the crypto market, which has fallen throughout the day, despite condemnation from almost every corner of the industry.
There were 143 million WLD distributed as part of the token launch. Notably, 100 million WLD were given to market participants, while the remaining tokens were given to investors who had been validated by having their irises scanned during the pre-launch of Worldcoin. That is why some suspect WLD creators initially had this pump-and-dump idea.
Worldcoin has been listed on Binance, Bybit, Huobi, OKX, Gate.io, and KuCoin despite worries regarding the token’s price stability and long-term valuation. According to CoinGecko data, its current 24-hour trading volumes exceed $348 million.
Biggest Crypto Rug-Pull Ever?
The difference between WLD’s circulating supply and its supply cap is a source of worry for many traders. Worldcoin has a market valuation of more than $22 billion when its supply is fully diluted, even if just 1% of it is currently in use.
Jeff Ross, founder and CEO of Vailshire Capital Management, ran a poll on Twitter asking whether Worldcoin “would be the biggest crypto rug-pull yet?” Almost 63% of the 962 people who voted at the time of press agreed.
Less than 24 hours after launch, the initial pump and dump for Worldcoin tokens is more than obvious.
A few hours after becoming live, WLD rose to a high of $3.30. But since then, the token has dropped 41.3% and is currently trading at $2.12.
Senior analyst Dylan LeClair saw parallels between its token distribution methodology and other sites’ distribution models as well:
“Worldcoin launched and pumped a microcap shitcoin with 1% of the total supply in circulation, ripping a page out of the SBF Solana eco playbook. Fully diluted market valuation of $22.8 billion.
“This Ponzi is still on the ground floor,” he added with cynicism before adding, “Ignore the VCs ready to dump on you (again)”. Actually, things are different this time.
Sword with Two Edges
The existence of the specialized hardware known as the Orb has also raised doubts among crypto enthusiasts.
The Orb, a unique gadget created to integrate actual people onto their blockchain network using eye-scanning technology, is at the core of Worldcoin’s approach.
This method seeks to validate personhood and advance inclusivity, although it has generated controversy. Critics claim that relying on a centralized hardware solution threatens user data confidentiality and exposes the system to potential exploitation.
The Worldcoin Foundation is therefore faced with the issue of dispelling this skepticism in order to win over potential consumers.
