Can Worldcoin (WLD) rise despite pressure by daily token unlocks?

Worldcoin (WLD) is among the coins with a linear unlock schedule. The pace of token unlocks will also accelerate, releasing vested rewards for the team and early investors. WLD may experience price pressure as more tokens reach the market until 2026. 

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Worldcoin aims at a widely democratic token distribution, especially by giving coins in exchange for a retinal scan. The notorious orb, however, is not the most significant source of tokens. A significant part of Worldcoin’s wealth is locked for the team and early VC brackets. 

The next two years will lead to a steeper pace of unlocking, ending on July 20, 2026. The coming years will be the steepest period of unlocks. WLD has only days left until moving into this new unlock schedule. 

In a couple of weeks, WLD will enter a period of steeper unlocks, significantly inflating the supply. Source: Defi Llama

The early VC allocation arrived after Worldcoin locked in four funding rounds , totaling $244M. Some of the early investors hold 13.5% of the WLD supply and will add to the unlocks in the coming months. 

Worldcoin to accelerate new token inflows

WLD unlocks around $5.95M in value per day, on a linear schedule. So far, only 16% of the tokens have been unlocked. In the coming years, the average daily unlocks will double, leading to price pressures. 

The WLD supply is split between Ethereum’s main net and the Optimism L2 blockchain. Currently, only 268M Ethereum-based tokens are tracked and actively traded. The total supply of WLD is 10B, with the goal of distributing 75% to the community. 

Also read: Worldcoin revises data collection methods in Chile after pushback

Even with a wide distribution, the coming unlocks will significantly alter the tokenomics profile of Worldcoin. As of Q2, 2024, WLD is a relatively scarce token, trading just under $2. In the past, WLD also showed the potential to move to a higher price range. 

Currently, the market can absorb just 10% of the daily unlocks without slipping significantly. Selling pressure and the overall market correction drove WLD downward, and it has been sliding nonstop since May. 

Since peaking at $10.48, WLD erased more than 80% of its value, as more early owners and traders decide to sell. Traders have also noted WLD is displaying a pattern of dumping coins on the market. 

Can the Worldcoin ecosystem support the WLD price?

WLD grew its token holder count in June, as new assets were distributed to more wallets. The total wallet count grew by 15.8% in the past month. Despite this, daily active users have fallen to a lower baseline. 

As of July 2024, Worldcoin is still busy with its distribution, and has no notable value locked. Worldcoin is not offering infrastructure, and has no notable fee schedule. Currently, the main use case for WLD is staking, which can in turn earn more WLD. Staking is also available through DappRadar, one of the main hubs for crypto activity and data. 

In the past few years, the Worldcoin project has gained fame from Sam Altman’s Open AI project. However, in the crypto space, Worldcoin has yet to launch its own chain and offer infrastructure, liquidity, or other features. 

In late June, Worldcoin announced it would partner with the Alchemy platform to start working on Worldchain. 

Worldcoin’s biggest advantage is that it offers a verified identity that can be used in other Web3 projects. Its success hinges on making its users branch out to other apps. The Alchemy platform will actively require the Worldcoin proof-of-person technology for multiple activities. 

Alchemy will expose Worldcoin’s technology to its 60K daily active users, in addition to the Carbon browser tailored to Web3 features. Worldcoin will also potentially connect with Alchemy Pay, one of the widely used Web3 payment features. 

WLD is seen as having the potential to rise in a short-term rally. After bouncing from lows of $1.70 and briefly going above $2, WLD is expected to attempt a move to $3.24. WLD traded at $1.83 after a 21% weekly loss, sliding to position 111 in terms of market capitalization. The coming may boost the token supply and result in a higher overall market capitalization and higher token visibility.

Cryptopolitan reporting by Hristina Vasileva