Worldcoin To Smash New All-Time High? Unlocks Could Spell Sell-Off
If there is a coin that gives XRP a run on its money, then it has to be WLD, the native currency of Worldcoin. Yesterday, Worldcoin prices pushed above a multi-week resistance line and rose to $3.2, the highest they have been in over a month. There were multiple catalysts driving this upswing, including a delayed token unlock and increased trading volumes on Binance.
Technically, the breakout above the dynamic 20-day moving average, a flexible resistance, fanned demand.
After the close of the bullish engulfing bar of July 15, chartists took advantage of the shift in trend. Their engagement saw prices roar to $3.2, reinvigorating the project.
Beyond this, Donald Trump’s failed assassination attempt has also impacted the recovery of top coins, including Bitcoin and Ethereum.
Worldcoin Announces Tokenomics Changes
It was a welcomed coincidence for WLD holders.
The team announced on July 16 that it would extend the lock-up period for WLD held by investors and team members.
This decision is strategic:
Worldcoin, though unlikely that the team or investors will cash out at the start of a bull run, wanted to suppress supply.
With low supply, they mitigate the chance of a sell-off now that WLD is available on top exchanges like Coinbase and Binance. Over $185 million in WLD has been traded on Binance in the past 24 hours.
The WLD unlock would have began this month.
However, it has been extended to July 2028, effectively reducing the daily emissions by 40%.
In the new arrangement, instead of 3.3 million hitting the market daily from July 24, only 2 million WLD will be released.
Following this announcement, the vesting period will be extended until 2029, impacting 80% of all WLD allocations.
Besides tokenomics, Worldcoin’s revised token unlock schedule won’t affect users who have received World IDs.
WLD Is Fragile, Down 85% From March
Currently, over six million World ID holders have received 211 million WLD.
Though these tokenomic changes are bullish, there are concerns about WLD.
According to Coingecko, WLD has an extremely low float ratio of 0.02.
This means only a few tokens are in circulation, and any dump would significantly impact prices.
The extension of the lock-up period could mean the team is aware of this concern and deliberately gives more time for the ecosystem to mature before it can absorb additional supply.
Worldcoin continues to be plagued by legal challenges. After being banned in several countries, including Kenya and Spain, investigative bodies are still investigating their activities.
After rallying to over $11 in March, WLD prices plunged by over 85% in early July. Therefore, though prices are recovering, the downtrend remains.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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