Worldcoin (WLD), the cryptocurrency token powering the digital ID project co-founded by Sam Bankman, has experienced a significant impact in the last 24 hours. This was caused by a large deposit of over $3.3 million worth of WLD tokens by a single entity, commonly referred to as a ‘whale’, on the leading global cryptocurrency exchange, Binance.
Worldcoin Price Slides Despite Increased Trading Volume
The trader deposited 624,479 Worldcoin (WLD) tokens into the exchange platform to prevent losses. According to a tweet from the on-chain analysis platform Lookonchain on May 14th, the whale had acquired these tokens over the past month at an average price of $4.69, resulting in a total investment of $3.38 million. However, the recent deposit into Binance just less than 24 hours ago led to the investor’s loss of around $50,000.
The Worldcoin (WLD) coin has dropped by over 15% in the last 24 hours, falling from $6.22 to $4.56 at the time of writing. Despite a significant increase in daily trading volume by about 70% to $670 million, the Worldcoin (WLD) price has been experiencing selling pressure, resulting in an 18% decrease over the past week.
Analysts Raise Red Flags About Worldcoin (WLD)
Worldcoin has strong fundamentals and the support of a dedicated global Web3 and tech community, but it has also faced criticism from analysts and Web3 observers.
One notable critic is DeFi Squared, a prominent crypto trader who has expressed concerns about WLD’s tokenomics. He has suggested that the project may lead to a significant wealth transfer in the current cycle.
The self-proclaimed analyst pointed out that instead of benefiting the intended recipients of universal basic income, the wealth seems to end up in the hands of the team and insiders.
Although Sam Altman, the CEO of OpenAI, is not directly involved in the development of the blockchain project, Defi Squared claims that WLD is misleading and has no real connection to OpenAI, as some people believe.
Some community members have further raised concerns about collecting biometric data, including iris scans, from millions of people worldwide by Worldcoin (WLD). Privacy advocates and experts have highlighted the potential risks and dangers associated with such a large biometric database and the individuals’ lack of transparency.
