Watch Out: Worldcoin (WLD) Review Show Insiders’ Plan to Dump Billions on Retail

Worldcoin, a digital identity project believed to be linked to OpenAI’s Sam Altman, has been tagged as a deceptive project looking to enrich the pockets of its team and insiders, contrary to its purported mission of being a source of universal basic income.

According to a tweet by pseudonymous crypto trader and analyst DeFi Squared, the Worldcoin team plans to dump billions of dollars of the project’s native token, WLD, on retail buyers via a series of unlocks in the coming months.

“Worldcoin realistically might become the greatest transfer of wealth of this entire cycle. Unfortunately, this wealth transfer isn’t in the form of universal basic income as their mission suggests, but instead to the pockets of the team and insiders,” the crypto trader stated.

Worldcoin’s “Predatory” Tokenomics

DeFi Squared explained that coins like WLD are often designed with predatory tokenomics that would benefit the projects’ teams and early investors. The analyst said the tokens’ low float and high fully diluted valuation (FDV) design is similar to one used by Sam Bankman-Fried, the convicted founder of bankrupt crypto exchange FTX. 

Such manipulative design directly enriches insiders as they hedge their locked allocations at high valuations through perpetuals and over-the-counter trades before release. DeFi Squared insisted that retail traders would think they are trying to push the price of the assets up, whereas the tokens are headed for hyperinflation.

WLD’s fully diluted valuation is $60 billion, and the token is being devalued by 0.6% daily due to grant emissions and operator claims. On-chain data shows that most of these claims are sold almost immediately. 

Upcoming WLD Emissions

Less than a month ago, the Worldcoin Foundation announced it would sell $200 million worth of WLD to trading firms, adding 18% of the token to its circulating supply. The sale targets institutional firms, with a 40-day lock-up to prohibit immediate resale and negative pressure on the asset’s value.

DeFi Squared said the tokens to be sold come from a portion of WLD supply allocated to the project’s community; however, the foundation is selling the assets to adversarial parties at a discount. In addition, when the early investors and team unlocks start vesting in two months, WLD will be inflated daily at 4%.

The emissions would trigger non-stop sell pressure of roughly $50 million daily as insiders look to cash out. In the end, potentially billions of dollars worth of WRLD could be dumped on the market by early investors and insiders.

Meanwhile, DeFi Squared revealed that Worldcoin is not linked to OpenAI as people assume, and Altman is not actively involved in the project.