YEREVAN (CoinChapter.com) — Worldcoin will reduce the circulating supply of its WLD tokens by up to 25 million on Oct. 24.
Worldcoin will renew its loan agreements with market makers on Oct. 24.
Notably, the biometric cryptocurrency project granted five non-US market makers 100 million WLD to ensure liquidity across centralized exchanges. Per the original deal, Worldcoin should receive the funds back by Oct. 24, but it now plans to extend the loan agreement until Dec. 15, with a reduced loan amount of 75 million WLD in total.
That leaves market makers with 25 million WLD in outstanding loan. They can either pay Worldcoin in the native tokens or — alternatively — may decide to purchase any amount of WLD tokens up to the returnable loan amount.
Simply put, market makers can take up to 25 million WLD tokens out of active circulation, boosting its upside prospects in spot markets if the demand increases simultaneously.
According to on-chain data provider Santiment, the number of Worldcoin’s 7-day and 30-day active addresses has been dropping since late August, suggesting muted Network activity despite the mentioned pilot program.
Moreover, the Network growth and the overall transaction count have also tanked since late July, confirming investors are reluctant to contribute to Worldcoin actively.
The WLD price peaked at over $2.50 in July but has been consolidating between $1.44 and $1.69 in October. For instance, the WLD/USD exchange rate dropped 11% to $1.5 on Oct. 23, showing investors paid no attention to supply cut news.
The Wolrdcoin project faces increasing legal scrutiny from various regulators, and data analytics firm IntoTheBlock indicated that over 75% of current WLD investors are in a state of loss as of Oct. 23.
Additionally, 94% of the supply is concentrated in the hands of large holders, which constitutes a greater risk of market manipulation.
In conclusion, the supply cut on Oct. 24 may cause a temporary price increase. However, the Network has shown no signs of stable growth since late July and appears centralized, given the overwhelming concentration of WLD in whale pockets.
Thus, traders who want to catch the supply cut wave should exercise caution with Worldcoin.
LUCKNOW (CoinChapter.com) — The Sei Foundation has announced a governance proposal to transition the network…
Grand Cayman, Cayman Islands, May 21st, 2024, ChainwireSet to hit Mainnet this summer, Sui’s new…
Ethena token might have more bullish cues coming from the success of the project's stablecoin…
NAIROBI (CoinChapter.com) — The probability of a Ethereum(ETH) Spot ETF receiving approval has skyrocketed from 25%…
YEREVAN (CoinChapter.com) — Lilian Nurieva, former Head of Networks at the Russian crypto investment fund…
Key Takeaways: Ethereum rallied 20% after reports that the SEC asked exchanges to update 19B-4…