Key Insights:
After a massive rally of 322% within a year and around 200% in a week, Worldcoin (WLD) Token witnessed slight profit booking.
Additionally, something which might scare WLD Token holders is that the bankrupt Alameda Research holds 19% of total token share.
If forced to sell by the courts, Alameda Research might offload its entire 25 million tokens just like it did with BitDAO.
A quick look at the 1-year chart of Worldcoin reveals that for the most part of the second-half in 2023, the cryptocurrency was actually in a bearish mode.
A rally started around late November in 2023, but it failed to sustain.
The current rally from $2.1 to $7.8 started around Feb 7, 2024 on the news that Sam Altman is seeking $7 trillion funding for his new venture with semiconductor based microchips.
The price gained by the cryptocurrency within a month is 188% and the gain within a week was around 140% during press time.
In one single day on Feb 19, 2024, the cryptocurrency gained 40% in price.
The impressive rally in Worldcoin has been due to two major reasons. One its daily wallet users have crossed 1 million users on Feb 17, 2024. The X account of Worldcoin tweeted this news on the same day.
A closer look at the graph of user growth shows that it had been increasing steadily since last year. This steady gain was impressive because the cryptocurrency had been witnessing regulatory backlash from multiple investigative authorities in Hong Kong, France, Kenya, UK and Germany for its iris scans.
The current rally had started nearly 10 days ago near Feb 07, 2024.
A little investigation showed us that the main reason for Worldcoin's performance was Sam Altman's new business venture.
Reportedly, the billionaire and Open AI co-founder was planning to raise $7 trillion in funding for a new chip development and manufacturing company.
If established, the company would rival the likes of Nvidia, Intel and Qualcomm. Also, it might even exceed all of its competitors. The reason being Sam Altman's venture seeks to even rival Neuralink(backed by Elon Musk) which has already established itself as a developer of bionic chips.
#NOTE: Bionic chips are those microprocessors which are attached to the human nervous system and assist in replacing damaged nerves. However, there has also been research on how these chips could be used to program the way we think.
During the press time, Worldcoin was showing early signs of profit booking. The cryptocurrency was down about 5% as compared to its previous 24-hour period.
Any interested buyer who wishes to get in to the token after seeing the growth of users, should at least wait for the prices to settle down before buying.
The reason why we think that a big selloff might come soon is because only 1.31% of the total Worldcoin (WLD) token supply (10 billion WLD tokens) is in circulation, i.e., 131 million tokens.
Something which is even scarier is that the bankrupt company Alameda Research has a supply of 25 million Worldcoin tokens.
At present we suggest users to stay away from the cryptocurrency. If you are even a high risk taker, we would still suggest you to not buy heavily. We found two major reasons to support our suggestions.
The biggest internal weakness is that the Worldcoin(WLD) token has more than 98% of its total token supply in reserve. We assume that founders would never hesitate to supply some tokens to the market for a quick profit.
Finally, the external threat lies in the fact that since Alameda Research is already under bankruptcy proceedings, it might be forced to sell its stake by the bankruptcy courts. In such a scenario, its price would eventually crash. Even if a slow selling scheme is mandated by the courts, still the token price would remain suppressed.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.