Author: Jack Inabinet, Bankless; Compiler: Deng Tong, Golden Finance
Driven by the artificial intelligence investment narrative, a large-scale buying boom pushed the fully diluted value (FDV) of low-circulation tokens to Reaching the top, WorldCoin is now at the forefront of the industry.
The project currently has nearly 80 billion US dollars in FDV, but the current circulation of the project’s tokens is only 1.4%,so that number has a big asterisk. The question is whether the project has a chance of maintaining such a high value as investor token unlocks significantly increase the available supply of the token. .
To understand where the coin is heading next, two Bankless analysts take opposing views in our latest Bull vs. Bear breakdown.
Let's start with the bear market.
What is the reason why WLD will usher in a bear market?
WLD kicked off the AI hype train this month, with FDV as high as $90 billion, but the good times can only last so long.
Here are WLD’s reasons for pessimism:
Unlocking coming soon:Worldcoin’s internal unlocking will begin in July, quickly bringing 20% of the total token supply to the market by the end of the year. Additionally, Worldcoin will be increasing the number of tokens flowing from the community supply to users in the coming weeks, with the circulating supply of WLD only at This adds to potential selling pressure after rising 16% in the past month alone.
Death of the AI Narrative: The explosion of AI stocks has led many to enter the cryptocurrency space seeking Beta value; WLD has been a natural recipient of funding flows, given its close ties to OpenAI founder Sam Altman and the potential need for proof of identity. Although high-flying AI stocks like NVDA have shown no signs of slowing down in recent months, theAI hype A deflation of the bubble would certainly end WLD's rally.
Lack of practical applications: Currently, the WLD token is only used as a "farm and dump" for giving away users tokens, and speculative instruments loosely related to artificial intelligence. Without a compelling reason to hold, it may be difficult to find demand once the AI narrative cools.
Chasing glitzy stories is fun until the bubble bursts and holders wonder why their hard-earned money was spent On a coin that has lost 90% of its value.
What is the reason why WLD will usher in a bull market?
Worldcoin's performance has certainly been strong of late, driven by OpenAI's Sora announcement, Altman's $700 million funding spree, and Nvidia's earnings. While gains can't last forever, several characteristics of Worldcoin suggest that this rally is far from over.
The following are the reasons for WLD’s optimistic outlook:
Easy-to-understand, engaging narrative: Story and sentiment determine cryptocurrency price action. Worldcoin sells a simple AI token narrative by attaching Altman’s name to it, avoiding elusive concepts like data availability. OpenAI's success made Altman a household name and benefited Worldcoin, showing that it is led by a top AI entrepreneur. These qualities have immediate appeal to both new and experienced investors, leveraging project trends with influential characters and simple, engaging stories.
Unique value proposition in artificial intelligence: Worldcoin’s “Proof of Personality” provides real, unique utility in artificial intelligence, making it stand out in a crowded market full of interest in distributed machine learning or on-chain artificial intelligence agents protocols competing fiercely for the same use case.
Extended utility and ecosystem: In addition to its governance role, WLD is also poised to enable a wide range of applications, from e-commerce to social media integration. It integrates with services like Shopify, Telegram, and Discord, showing versatility and potential for mainstream adoption. Some expect use cases to expand to include payments or tips within the World App, providing more reasons to hold WLD.
Strong capital and investor support: Worldcoin’s last funding round raised $115 million from heavyweight venture capital investors such as a16z, Blockchain Capital, and Bain Capital Crypto. The participation of these top investors provides the capital needed for growth and is also a vote of confidence in Worldcoin, which retail investors may view as a solid foundation with high growth potential.
In summary, Worldcoin’s clear narrative, unique utility, thriving ecosystem, and massive investor support enable it to continue its bullish momentum.
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