The Worldcoin global currency project from OpenAI CEO Sam Altman is gearing up for a massive token unlock. Other things being equal, an increase in supply will cause its exchange rate to fall significantly.

The total token issuance at the start of the project was 10 billion, but most of the funds, including all of the coins for early investors and developers, have been locked.

The circulating supply is now only 194 million WLD or 1.9% of the total issuance.

However, over the next 15 years, the remaining coins will be unlocked following a timeline presented in the project's white paper.

The unlocking will begin on 24 July, with 4.75 million WLD being released per day. This represents 0.05% of the total number of tokens or 2.4% of the current circulating supply. After 41 days, the same number of tokens that are currently in circulation will have been unlocked.

The extent to which the price is negatively affected will depend on the willingness of holders to part with their coins. Meanwhile, World Assets Ltd, a subsidiary of the Worldcoin Foundation, announced yesterday that it intends to sell between 500,000 and 1.5 million tokens per week for six months (or less) to institutional trading firms outside the US. In other words, the parent company itself will provide $70 million to $200 million in sales pressure.

The widespread enthusiasm for the project among users could mitigate the unlocking's negative impact. However, the need to undergo a retinal scan to join the community has been met with increasing resistance from regulators. This is clearly expressed in the project's geographical representation, where Asia, Africa and Latin America account for 82.4%, and users' main interest of users is primarily about getting a starting bonus of 25 WLD ($138).

However, even these regions have seen an increase in prohibitive measures against Worldcoin. In Europe, after Spain and Portugal banned the coin, Germany is the only remaining market where users can still be recruited. 

Given the existence of the World ID black market and the violations of international law (e.g., retinal scans of children), it will be increasingly difficult for the project to recruit participants. When coupled with the project's controversial tokenomics, the future for WLD investors does not look encouraging. 

StormGain Analytical Group 
(platform for trading, exchanging and storing cryptocurrency)

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