Rhythm Morning News | A summary of important news from last night and this morning on May 14

Analysis: Worldcoin inflation rate may soar to 4% per day in the next 70 days, insiders try to cash out at high prices

DeFi researcher @DefiSquared recently pointed out that Worldcoin has a serious inflation problem, and its token WLD has a fully diluted market value of up to $60 billion, and the unlocking of WLD will increase significantly in the coming months, which may lead to a large-scale sell-off.

Specifically, WLD is currently diluted by 0.6% per day due to rewards and operator claims. The Worldcoin Foundation has just announced that it will sell another $200 million worth of tokens to trading companies, equivalent to 18% of the existing circulating supply, and will be sold at a discount. This part of the funds comes from the part of the WLD token supply called "community", but it is sold to counterparties to benefit the foundation.

More importantly, after 70 days, when the VC and team tokens begin to unlock, the supply of WLD will increase by 4% per day. Based on a fully diluted market value of $60 billion, this is equivalent to nearly $50 million of sustained selling pressure per day.

According to analysis, Worldcoin's token economic model was designed to be predatory from the beginning to benefit the team and early investors. In December last year, the foundation even deliberately terminated the market maker contract, allowing prices to be squeezed up with low circulation. This manipulative design of low circulation and high valuation directly benefits insiders because they can hedge the high-valued locked shares through contracts and over-the-counter transactions before unlocking.

It is worth noting that most retail investors may not even know that Sam Altman is no longer actively involved in Worldcoin and that the project has nothing to do with OpenAI. In light of this, it is ethically questionable to encourage ordinary retail investors who do not understand fully diluted market cap and inflation to buy a fake AI coin at a $60 billion valuation. If you see strategic announcements in the coming months, keep in mind that this may just be to ensure insiders can get exit liquidity at a high valuation.

Binance Launches SOL and BNB Locking Products and ETH Staking Activities, Sharing 38,500 PORTAL Airdrop Rewards

Binance announced the launch of a new promotion, where users can share up to 38,500 PORTAL airdrop rewards by subscribing to SOL lock products, BNB lock products or staking ETH. The event period is from 00:00 (UTC) on May 14, 2024 to 23:59 (UTC) on May 28, 2024. Participants need to subscribe to at least 1 SOL of SOL lock products, 0.5 BNB of BNB lock products or at least 0.05 ETH of ETH stake during the event period to have a chance to get rewards. In addition, participants can also enjoy up to 8.1% annualized rate of return (APR) rewards.

DeFi asset management platform Zapper is suspected to launch tokens

DeFi asset management platform Zapper released a promotional video with the theme of "coins with its logo pattern" and the text "what if...", which is suspected to be the upcoming launch of tokens.

Zapper added that more details will be announced in the coming weeks.

GameStop's stock price soared nearly 75%, and short sellers lost nearly $1 billion in one day

The stock price of US game retailer GameStop soared 74%, causing heavy losses to short sellers who shorted the stock. According to data from analysis firm S3 Partners, hedge funds that shorted GameStop suffered a mark-to-market loss of $838 million that day.

Ihor Dusaniwsky, head of predictive analytics at S3 Partners, said that before today's trading, GameStop's "short squeeze" score had reached a full score of 100, and a large amount of short covering was expected. The sudden surge in GameStop's stock price seems to have been triggered by the internet celebrity Roaring Kitty, who made Wall Street history by encouraging retail investors to buy GameStop in large quantities in 2021. Roaring Kitty posted on social platform X for the first time since 2021, posting a photo of a gamer concentrating on the game, suggesting that the "game" has begun.

In the "meme stock" frenzy of 2021, retail investors concentrated on stocks that hedge funds were bearish, forcing short sellers to cover their positions and pushing up the stock prices of these companies. Currently, more than 24% of GameStop's free float is shorted. According to S3 statistics, short sellers who shorted GameStop have lost $1.24 billion since May alone.

Dusaniwsky pointed out that short squeeze-related buying will push up GameStop's stock price, but new short sellers are expected to enter the short market at around $30. He warned that short sellers may experience a "bumpy and bloody" market in these stocks. In addition to GameStop, other meme stocks such as AMC and Reddit also surged on Monday, with AMC up 15% and Reddit up 9%.

DRIFT airdrop will be open for claiming at 20:00 on May 16

Solana ecosystem DEX derivatives platform Drift announced that it will open DRIFT airdrop claims at 20:00 on May 16, with a total of 120 million airdrop tokens (12% of the total token supply). The qualification and claiming website is: drift.foundation.

The airdrop for all eligible users has two components: initial allocation and bonus allocation. The initial allocation is available at the time of release, and the bonus is unlocked linearly within 6 hours.

Bounce MA's first synthetic token MBA is about to be launched, which is a merger of MUBI, BSSB, and AMMX tokens

Bounce MA announced that it will launch its first synthetic token MBA. As a new member of the Bounce ecosystem, MBA is a merger of MUBI, BSSB, and AMMX tokens, aiming to enhance the resilience of these three projects rather than replace them.

According to reports, users need to submit 5 MUBI, 1 BSSB, and 200 AMMX to synthesize an MBA. It is worth noting that once the tokens involved in the casting are submitted, they cannot be restored. At the same time, AUCTION holders will be able to benefit from the 0.5% handling fee charged during the MBA casting process.

Flow will activate EVM functionality on the testnet on June 20

Flow has officially released a very detailed Crescendo upgrade migration guide to help developers prepare for the upcoming major network upgrade. The Crescendo upgrade will introduce EVM on Flow and Cadence 1.0, bringing huge opportunities to the Flow ecosystem. Flow officials pointed out that all developers developing smart contracts on Flow need to upgrade their smart contracts in a timely manner to adapt to this update.

The guide details the key steps that developers need to take, including: 1) fully understand the important changes in this update, especially Capabilities and Entitlements; 2) modify and upgrade existing code according to new standards, especially the new FT/NFT standards; 3) use the latest Cadence 1.0 simulator to conduct comprehensive code testing; 4) conduct staging tests of the new version of smart contracts in a controlled environment to ensure the integrity and consistency of its functions.

At the same time, the guide also provides a clear timetable for the migration process. The entire migration will be carried out in four phases in the Flow test network, each lasting several days, allowing developers to adapt and optimize step by step. The full upgrade of the Flow test network is scheduled for June 19, followed by the activation of the EVM function on June 20.

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