Worldcoin plummets and loses all accumulated profits in 2024

The cryptocurrency Worldcoin (WLD), launched with great anticipation in July 2023, faces a challenging and worrying scenario. After reaching a peak of US$ 12 in March 2024, the digital currency, which is part of the ambitious global digital identity project founded by Sam Altman, CEO of OpenAI, has seen its value plummet in recent months.

Last week, WLD recorded its lowest value of the year, trading at just US$1.71. As a result, the cryptocurrency lost all the gains accumulated throughout 2024.

Worldcoin arrived on the market with the proposal of creating a unique digital identity for each person, using advanced biometric technology.

A device called “Orb” scans individuals’ irises to ensure that each participant is a unique human being. The innovative, albeit controversial, idea initially caught the attention of the cryptocurrency market. However, the current reality paints a bleak picture for the platform’s native token.

Worldcoin collapses

WLD’s steep decline can be attributed to a combination of internal and external factors. Internally, the cryptocurrency suffers from its highly inflationary nature. Data from CoinMarketCap indicates that out of the anticipated 10 billion tokens, only 322 million have been released so far.

This gradual issuance creates constant downward pressure, especially if demand does not keep up with the increased supply. Furthermore, many of those who receive WLD after iris scanning tend to quickly sell their tokens, further contributing to the price drop.

The analyst known as DefiSquared has previously warned about the risks associated with the WLD economy. In a critical report published in May, he stated that “Worldcoin could realistically become the largest wealth transfer of this entire cycle.”

However, he also highlighted that this transfer would not benefit investors, but rather the team behind the project and its insiders. According to the analyst, the trend is that the aggressive sale of tokens will continue, putting even more downward pressure on prices in the coming months.

In addition to internal challenges, Worldcoin has also been affected by significant external events. Over the past week, three main factors have contributed to the widespread decline in the cryptocurrency market, and WLD was no exception.

First, higher-than-expected unemployment data from the United States created economic uncertainty. Second, a financial crisis in Japan shook global markets. And finally, rising international tensions between Iran and Israel raised fears of an imminent conflict, prompting investors to seek refuge in safer assets such as U.S. Treasuries.

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