OpenAI creator Sam Altman rings in a fresh controversy with the launch of the Worldcoin token. The token, launched on July 24th, caused a stir in the market due to its tokenomics, which could give prospective investors reasons for pause. Right in the first 24 hours, the trading volume reportedly exceeded its entire capitalization by 1.6 times, which could be considered as nothing short of peculiar. Marcel Pechman attributes this oddity to the fact that the project loaned 100 million tokens to market makers, although only 8 million coins were given to users.
Here’s the catch: 40% of these tokens are set to be unlocked between July 2024 and July 2025, which is 500 times more than what was allocated to users via airdrop. In order to maintain a market cap below Chainlink, the Worldcoin token price would need to be below $1 in July 2025, translating to a depreciation of 58% compared to its current level.
This raises significant concerns for traders looking for short-term profits, particularly given the huge quantity of tokens available to venture capitalists who obtained them at much lower prices. There’s also talk of a likely price stagnation for Bitcoin in the near future, as per the Deribit Bitcoin volatility index analysis. However, Pechman posits potentially counterintuitive movement for Bitcoin, belying the popular belief of a flatlining trend.
The crypto landscape has been regularly jolted with other interesting goings-on. An instance is the reinstitution of deposits and withdrawals from payment provider Alphapo following an exploit leading to losses currently estimated at over $60 million.
In another corner of the world, Japan’s Prime Minister Fumio Kishida gave a nod of support to the Web3 ecosystem, as Binance prepares to launch its services on a Japanese platform in 2023. In the regulatory sphere, Binance along with CEO Changpeng Zhao, formerly Sam Lim, are preparing to file a motion to dismiss the Commodity Futures Trading Commission’s lawsuit against them.
These widespread developments lend credence to the dynamic and unpredictable nature of the crypto world, presenting both opportunities and risks that should be evaluated with due diligence.
Source: Cointelegraph
