The author and analyst Marcel Pechman covers the Worldcoin token launch, why it is contentious, and how it differs from the majority of altcoins in the most recent episode of The Market Report. The report suggests that before even considering an investment, investors should do their homework on the project.
There are two glaring anomalies when examining the tokenomics of the Worldcoin token, which was introduced on July 24. First off, the token reportedly moved 1.6 times its full value in the first 24 hours, indicating that the exceptionally high volume exceeded the market cap. How on earth is that possible?
Pechman says that it is important to realize that the project has lent 100 million tokens to market makers. The $400 million stated volume cannot be justified by the fact that only 8 million coins were distributed to customers, some of whom may or may not have reversed their positions.
Let’s move on to the second section of the narrative, which Pechman believes is much more worrisome. Between July 2024 and July 2025, over 40% of the tokens will be released, which is 500 times more than the 8 million that users are now receiving via airdrop.
Ultimately, the Worldcoin token price in July 2025 would have to drop below $1, or 58% below the present level, to maintain a market capitalization below Chainlink, for instance, at $4 billion.
Given that there are a lot of tokens from venture capitalists who paid much lower prices, it is a major danger for traders who are seeking to reap 20% gains in the short term.
The next subject of the program is now: The Deribit Bitcoin Volatility Index, which fell to its lowest point in two years, is examined by Pechman. Some analysts believe it suggests there might not be much price volatility for Bitcoin in the foreseeable future. However, Pechman sees a problem with this since he does not think that lateral movement is the most likely result.
Do you want to discover why Pechman interpreted the volatility indicator in a way that seemed paradoxical and how to position yourself in this circumstance? Find out more in the most recent episode of The Market Report, a program that only airs on the brand-new Cointelegraph Markets & Research YouTube channel.
