Worldcoin (WLD) Price Pumps, But Here’s Why You Shouldn’t Buy This ‘Slow Rug’ Coin

Worldcoin’s token is again among the top crypto gainers list. Late last night, the WLD price pumped over 10% from $1.39 to the $1.6 range before cooling off and retracing to the current levels of $1.5.

While this double-digit pump is encouraging for Worldcoin holders, we urge caution due to the circulating supply concerns.

Alarming Tokenomics

Analyst Marius raised red flags about Worldcoin’s tokenomics on X (Twitter):

“$WLD has the worst tokenomics right now and is programmed to slow rug,” he warned. Marius highlighted the alarming daily and monthly token unlocks, stating, “$WLD currently has a daily unlock of 3.4 Million tokens ($4.75 million) and monthly unlock of 102 million tokens ($140 million).”

Breaking down these numbers, Worldcoin investors receive 1.3 million WLD daily, while the Worldcoin team gets 1.8 million tokens daily. This creates a sell pressure of $140 million monthly, which is particularly concerning given that WLD’s circulating market cap is only $600 million.

Short-Term Pumps vs Long-Term Outlook

Marius predicts that short-term pump and dumps should be expected more frequently on $WLD. These price spikes could be attempts to attract buyers for exit liquidity. However, the long-term price forecast looks grim, with Marius suggesting “$WLD to $0.1 is programmed.”

Given these tokenomics, holding WLD for long-term gains during this bull run appears risky. The constant influx of new tokens into the market creates persistent downward pressure on the price, making it challenging for WLD to sustain any significant price increases.

These massive token unlocks raise questions about the project’s long-term viability and commitment to its investors. Short-term traders might find opportunities in the pprice pumps like his. However, the fundamentals suggest that Worldcoin could face challenges in maintaining its value over time.

Read also: Near Protocol Eyes Breakout: Can NEAR Bulls Sustain Momentum?

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