Worldcoin 'The Greatest Transfer of Wealth' to… The Team’s Pockets? – Here’s Why

Whale Deposits 624,479 WLD Tokens into Binance

A whale investor recently made a strategic move by depositing their entire holdings of 624,479 Worldcoin (WLD) tokens into Binance.

This move has drawn attention due to its potential implications and the investor's motivation behind it.

According to Lookonchain, the deposited tokens, valued at approximately $3.33 million, were acquired by the investor over the past month at an average price of $5.42, resulting in a total investment of $3.38 million.

However, despite the considerable investment, the recent deposit into Binance has resulted in a loss of around $50,000 for the investor.

This whale's decision to deposit such a substantial amount of WLD tokens into Binance raises several questions and sheds light on the ongoing concerns surrounding Worldcoin's tokenomics.

It's a move that shows the growing unease within the cryptocurrency community regarding the project's trajectory and the potential risks associated with investing in it.

DeFi^2's Analysis and Alarming Revelations

DeFi^2, a prominent trader on Bybit, has been vocal about the alarming trends observed within the Worldcoin ecosystem.

In a detailed analysis posted on X, DeFi^2 highlighted several key points that paint a grim picture of Worldcoin's tokenomics and its implications for investors.

Firstly, DeFi^2 pointed out that Worldcoin's tokenomics may not align with its purported mission of facilitating universal basic income. Instead, it appears that the primary beneficiaries of the project are the team and insiders, who stand to profit immensely from its design.

“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.”

Furthermore, DeFi^2 delved into the specifics of Worldcoin's hyperinflationary model, which poses a significant threat to investors.

At its current fully diluted valuation of $60 billion, Worldcoin faces a daily devaluation of 0.6% due to emissions of grant and operator claims.

This ongoing devaluation, coupled with aggressive token unlocks and inflation, creates a continuous sell pressure on the coin, ultimately benefiting insiders at the expense of retail investors.

Predatory Tokenomics and Manipulative Design

Perhaps the most alarming aspect highlighted by DeFi^2 is the predatory nature of Worldcoin's tokenomics and its manipulative design.

DeFi^2 drew parallels between Worldcoin's strategy and tactics employed by prominent figures in the cryptocurrency industry, such as Sam Bankman-Fried (SBF).

The intentional termination of the market maker contract by the Worldcoin Foundation, as noted by DeFi^2, mirrors the manipulative tactics seen in other projects aimed at inflating the token's value artificially.

This design not only enriches insiders but also creates a false perception among retail investors, who may be unaware of the true nature of the project and its lack of association with prominent entities like Sam Altman and OpenAI.

Indeed, despite the anticipation and buzz surrounding OpenAI's new AI model, the price of Worldcoin token continued to decline rather than experiencing a surge.

The Potential Windfall for 3AC and FTX from Worldcoin Surge

Screenshot of a news headline provided by DeFi^2.

3AC's Strategic Position:

Three Arrows Capital (3AC), an early investor in the AI-based token Worldcoin, stands to reap significant benefits from the recent surge in its value.

Led by co-founder Su Zhu, 3AC holds a substantial investment in Worldcoin, with a wallet balance of 75 million WLD tokens, reportedly received from the project’s creators.

This sizable holding, currently valued at approximately $376.90 million, marks one of 3AC’s most valuable assets.

Zhu has expressed optimism about the firm’s position, suggesting that creditors owed $1.5 billion by 3AC stand to gain from the surge in WLD's price.

With Zhu hinting at a significant increase in the firm’s investment holdings of the token, it's evident that 3AC is strategically positioned to benefit from Worldcoin's rally.

FTX's Strategic Holdings:

Similarly, FTX, the crypto exchange founded by Sam Bankman-Fried (SBF), holds a substantial stake in Worldcoin, positioning it for significant gains.

Prior to Worldcoin’s launch, SBF had expressed optimism about the token’s performance.

On-chain data indicates that a wallet likely associated with FTX holds an impressive balance of approximately 606.928 million Worldcoin tokens, valued at nearly $3.029 billion at the current trading price.

While the wallet's transaction history showcases previous transfers and deposits of WLD, activity halted in November 2023. FTX, owing $8 billion to an extensive list of creditors, is primed to benefit from the surge in the value of its WLD holdings.

With Worldcoin’s surge, FTX's strategic position in holding the tokens could lead to substantial gains for the exchange and its creditors, marking a pivotal moment in its financial landscape.

In both cases, the strategic positioning of 3AC and FTX within the Worldcoin ecosystem highlights their potential for substantial gains as the token's value continues to soar.

Is it possible that they have a connection to the project?

Crypto Community Responses

Many voices within the crypto community on X, including ZachXBT, a prominent crypto trader recognised for his insights into NFT projects and rug pulls, seemed to share a consensus.

Going a step further, ZachXBT labeled Worldcoin as “scam”.

Two months prior, Youtuber James from MoneyZG expressed a comparable viewpoint, characterising Worldcoin as "one of the biggest financial scams" he had encountered, noting a substantial dissonance between its market capitalisation and fully diluted value.

A Singapore Senior Citizen’s Adventurous Spirit

Presently, Singapore boasts nine Orb locations, strategically situated predominantly within the vibrant central district. This impressive concentration is notably significant for a nation of Singapore's size, particularly when juxtaposed with larger countries such as the United States, which only has five locations. The presence of these Orb locations has sparked considerable excitement and anticipation among Singaporeans, signifying the nation's embrace of cutting-edge technology and its position as a leading hub for innovation in the region.

Age didn't deter Mr. Goh, the most senior staff of Kirin Consultancy, as he embarked on a bus journey to join the queue for the fascinating experience of scanning his own eyeballs, showcasing that curiosity and innovation transcend age barriers.

Mr. Goh showing his achievement on Worldcoin app

Worldcoin's Fluctuating Value

Despite recent revelations casting doubt on Worldcoin's future, the project's value has remained relatively stable in the past 24 hours.

Currently valued at $5.03, Worldcoin saw a modest increase of 3.25% within this timeframe, indicating resilience in the face of scrutiny.

Privacy Concerns and Regulatory Challenges

Worldcoin's ambitious goal of revolutionizing digital identity infrastructure has been met with both enthusiasm and skepticism.

While the project aims to combat issues of identity fraud and bot manipulation, it has faced criticism for its potential privacy implications.

This criticism has led to bans in several countries, including Kenya and Spain, as well as ongoing investigations in France, Germany, and the United Kingdom.

Additionally, Worldcoin's regulatory woes were exacerbated by a data breach in May 2023, which exposed sensitive user information, further complicating its path forward.

Navigating Cryptocurrency Risks

Moving forward, the recent actions of the Worldcoin whale investor, coupled with DeFi^2's insightful analysis, serve as a stark reminder of the risks inherent in investing in projects with questionable tokenomics and manipulative designs.

As the cryptocurrency landscape continues to evolve, it is imperative for investors to exercise caution and conduct thorough due diligence before allocating their funds, lest they fall victim to schemes designed to benefit a select few at the expense of the masses.

–

Originally post by DeFi^2 (@DefiSquared):