Will Worldcoin End In “Tears”? This Analyst Thinks So

Name	Symbol	Market	Market Cap ($)	Algorithm
Solana	SOLUSD	Crypto	93,001,387,797	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Solana

SOLUSD

Crypto

93,001,387,797

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	2.14	1.09%	198.50	198.49	198.50

Price Change

Price Change %

Current Price

Bid Price

Offer

2.14

1.09%

198.50

198.49

198.50

High Price	Low Price	Open Price	Prev. Close	52 Week Range
205.20	195.79	197.21	196.36	42.27 - 210.00

High Price

Low Price

Open Price

Prev. Close

52 Week Range

205.20

195.79

197.21

196.36

42.27 - 210.00

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	23:21:22	0.075060	198.50	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

23:21:22

0.075060

198.50

USD

Price x Volume	Volume	Base Symbol	Related Pairs
277,142,074.80	1,384,224.56	SOL	SOLEUR	SOLGBP	SOLBTC

Price x Volume

Volume

Base Symbol

Related Pairs

277,142,074.80

1,384,224.56

Will Worldcoin End In “Tears”? This Analyst Thinks So

26/02/2024 10:00pm

NEWSBTC

One analyst on X is concerned about the long-term sustainability of Worldcoin (WLD), a project aiming to build a universal digital identity system. While acknowledging the project’s innovative approach and recent upswing that has seen WLD more than 4X, the analyst thinks “Worldcoin will end in tears.” FDV Versus Market Cap Soars Doubt: A Massive Price Dump Incoming? In a post, the analyst points to a significant discrepancy between Worldcoin’s fully diluted valuation (FDV) of $82.1 billion and its current market capitalization of around $1.1 billion, as seen from CoinMarketCap. To compare, Ethereum (ETH), the most valuable altcoin, has an FDV of $369 billion, slightly less than the current market cap of around $362.1 billion. The FDV shows the hypothetical market cap if all coins or tokens were in circulation. On the other hand, the market cap shows the total valuation of coins in circulation. Typically, the higher the FDV, the higher the chance of the coins in circulation being diluted when locked assets are released. Prices will likely take a hit with the deluge of coins hitting the secondary markets. The sell-off would especially be intense if demand doesn’t increase proportionally. Related Reading: Solana Poised For Major Comeback – Analysts Spot Breach Of $103 In Worldcoin’s case, the massive difference between FDV and the current market cap portends possible price dumps should a considerable chunk of WLD be released. And this will likely be the case, especially in light of what’s expected in the coming weeks. A breakdown of its tokenomics shows that besides coins airdropped to users, a big chunk was allocated to venture capital firms and individuals like Alameda Research and Three Arrows Capital (3AC). Token Unlocks data show that more WLD will be unlocked in less than five months. The release, observers note, could heap pressure on the coin, possibly pushing it lower from the current valuation. Worldcoin Is Expanding, Will WLD Bulls Succeed? Worldcoin plans to release a universal digital identity system. This solution will run on the blockchain and, to a small degree, rely on artificial intelligence (AI). Although the project faced regulatory challenges in multiple countries, including Kenya, Worldcoin recently expanded into Singapore. Related Reading: XRP Price Soars: Analyst Predicts Surge Beyond $200 Even so, the analyst is concerned that the lack of demand-side drivers, specifically adoption, could slow down the uptrend. WLD is in a sharp uptrend, looking at the development in the daily chart. If the coin stays above $6, WLD could soar in the coming sessions. Feature image from Shutterstock, chart from TradingView

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