Bitget General Manager Gracy Chen: WorldCoin is difficult to maintain a high valuation in the long term

ChainCatcher news, Worldcoin recently announced its token launch. When several CEXs opened, the WLD token briefly priced around 1 dollar, followed by a rapid surge. According to Bitget, WLD peaked at 4.7 dollars for a short time, with an increase exceeding 1000%.

The total supply of Worldcoin (WLD) is 10 billion, and based on fully diluted valuation (FDV), this project reached a peak valuation of 47 billion dollars. However, the WLD price subsequently plummeted, primarily due to flaws in the market-making terms and the tokenomics.

Gracy Chen, General Manager of Bitget, stated: It is difficult for WorldCoin to maintain a high valuation in the long term. Firstly, there are flaws in the market-making terms. Market makers control over 96% of the circulating tokens, and their high stakes give them complete manipulation ability over the market, allowing them to dictate the price direction. Since their cost is between 2-2.8, with a support price of 2.8 dollars, any opening price above 2.8 is a profit opportunity for market makers to distribute tokens. Secondly, NFT holders were not airdropped tokens, which sparked public outcry. Thirdly, the release curve is too rapid, and the aggressive token release speed has led to excessive selling pressure. Finally, the project changed its token distribution plan; in 2021, Worldcoin allocated 20% of tokens to Tools for Humanity (TFH) investors and teams, which was later increased to 25%. In the revised tokenomics, more low-cost tokens will flow to the project parties and investors rather than the community.