Worldcoin (WLD) experiences a significant price increase, sparking talks of potential market manipulation as insider token unlocks loom. The decision to extend token lockup periods and concerns over primary beneficiaries raise questions about the project’s direction.
Worldcoin (WLD) Price Surge Amid Market Concerns
Worldcoin (WLD) has experienced a significant price increase, jumping 75% over the past five days and 38% in the last 24 hours. This has raised discussions about potential market manipulation, particularly ahead of planned insider token unlocks.
Worldcoin recently announced an extension of token lockup periods for early contributors, with the unlock schedule for 80% of WLD tokens held by Tools for Humanity’s (TFH) team members and investors extended from three to five years. This decision is intended to align with the long-term vision of the project.
Currently, only 2.7% of WLD’s total supply is in circulation, the smallest percentage in the industry at unlock time. This allows the team to maintain a $30 billion fully diluted valuation (FDV). On “The Scoop Podcast,” CEO Alex Blania disclosed measures taken to prevent steep price surges, like the use of call options for market makers, which were aimed at stabilizing prices. These measures were retracted in December, causing immediate substantial price increases.
DeFi^2, a prominent trader, has highlighted that the price rise may be partially driven by strategic announcements timed before token unlocks, potentially benefitting insiders. Worldcoin’s framework, designed to support universal basic income (UBI), sees substantial token emissions to team members and venture capitalists, raising concerns about the primary beneficiaries.
Retail investors, especially in South Korea, where 25% of the circulating supply is held, are seen as vulnerable to these dynamics. Despite Worldcoin’s mission to create a global identity and financial network, the current market activities raise questions about the true beneficiaries of its tokenomics strategies.
At the time of reporting, WLD trades at $3.22.
