The ongoing sell-off in Bitcoin price is fueling speculation that it is a liquidity hunt. Meanwhile, some altcoins have experienced even greater losses. In particular, WLD Coin, which is expected to encounter regulatory issues, continues to trade at $1.8. Despite its media attention, the project has several problematic aspects.
The price of Worldcoin (WLD) dropped below the $2 support level on Tuesday, extending its August losses to 25%. This comes as no surprise, as concerns have been raised about the project’s potential legal problems since its launch.
Worldcoin (WLD) has gained significant media attention due to the reluctance of many governments to allow the collection of their citizens’ biometric data in exchange for a few tokens. According to Santiment, the number of active users embracing WLD in daily transactions has rapidly declined. As shown below, on August 8th, Worldcoin only saw 440 Active Addresses, which is 80% below the figure at the time of launch.
Despite the decline in on-chain readings, it is said that whales continue to make purchases. The Santiment chart below shows that whales holding between 100,000 and 1 million WLD tokens followed the August downturn. As of August 1st, whales had a cumulative balance of 4.02 million WLD tokens. However, as of August 9th, whales now hold 5.02 million WLD.
This indicates that Worldcoin whales took advantage of the recent dip to buy more WLD tokens. Typically, when whale investors respond to a price drop by buying more tokens, it suggests they are confident in an early price recovery. If their efforts are successful, the WLD Coin price should regain support at $1.9 in the near future.
However, it could also be misleading as the current value of these purchases is approximately $2 million. Due to future investigations and potential legal proceedings, WLD Coin remains risky. It is important for investors to consider potential selling waves caused by chain lawsuits.
On the other hand, Sam, the CEO of OpenAI, believes that if Worldcoin wants to succeed, it should give people tokens that have value. To achieve this, it needs to continue keeping the token price reasonable while collecting biometric data.