Worldcoin (WLD) finds itself in an interesting spot after suffering a 70% plunge from its debut price. The price of WLD, the native token of Worldcoin, has stabilized at around $2.35, after hitting a rough patch post its market entry. Initially, WLD had a gripping start, achieving a peak price of $7.50. However, the 70% decrease has now resulted in a capricious trading range of $2-2.50, signaling ambivalent market tendencies.
The Worldcoin project, founded by Sam Altman of OpenAI, brings to light a unique token distribution model – an airdrop linked to eyeball scanning. WLD’s physical orb confirmation method acknowledges user identity, handing them their 25 token share while creating an intriguing device and distribution model conversation.
A substantial point to consider is the anchoring of WLD’s price around $2 until October 2023 due to its initial supply distribution pact. Market makers from outside U.S. territories are loaned 100 million tokens, which can either be returned or purchased for $2 + ($0.04*X), where X is the number of purchased tokens divided by a million.
This strategy suggests a deliberate attempt at keeping the token intriguing for potential users, making them more inclined to the scanning process, even for a token that doesn’t exist yet. Although the token’s stabilized price makes signing up and scanning seem worth their while now, its stable state may not last long.
Interestingly, there is a surge in Optimism wallets’ holding WLD tokens. However, WLD transfer volume is said to have dropped in the same timeframe, indicating investors’ preference to hold. The scenery might look sunny for now with WLD trading near the lower trendline of an ascending channel pattern eyeing a rebound to the $2.35-$2.40 range. However, the impending risk is always ready to strike a hard blow.
On the downside, a breach below the lower trendline could pull the WLD price back to the $2.15-2.20 range. It might even go as low as the $2-2.10 range, marking almost a 10% dip from its current price levels. This scenario emphasizes why every investing or trading move should be supported by thorough research.
Hence, while the hype around new offerings like WLD is hard to ignore, potential investors need to approach with a pinch of skepticism, considering the token’s short trading history as well as market volatility.
Source: Cointelegraph
