The price of Worldcoin (WLD) made a volatile debut across mainstream cryptocurrency exchanges. It initially soared nearly 6% to $2.35 on July 29 but quickly plummeted, ending up down 70% from its market debut peak of $7.50. This extreme price fluctuation highlights the unstable nature of the token’s initial launch.
After the initial turbulence, the WLD price has appeared to stabilize. It is currently trading within the $2–$2.50 range, indicating a growing conflict in the market. This stagnant movement suggests that buyers and sellers are unable to reach a consensus on the token’s value.
WLD is a part of the Worldcoin Foundation, which was launched by OpenAI’s Sam Altman on July 24. The token has a maximum circulation supply of 143 million, with 43 million distributed to Worldcoin’s app users through an airdrop. To receive the airdrop, users must verify their identity using an eye-scanning physical orb, receiving 25 WLD per user.
Of the remaining 100 million tokens, they have been loaned to market makers outside the United States until October 2023. These market makers have the option to return the WLD tokens or purchase them for $2 + ($0.04 * X) per token, with X representing the number of tokens being purchased divided by 1 million. This arrangement adds another layer of complexity to the token’s price stability.
With the majority of tokens being held by market makers until October 2023, the WLD price seems to be anchored around the $2 mark. This strategic move aims to keep the token attractive to potential users. According to Kaiko Research, this anchoring effect is crucial in convincing people to scan their eyes for a token that does not yet exist. The report pointed out that if the token’s price were significantly lower, such as $0.10, it would be even more challenging to convince users to participate.
The current value of the 25 WLD tokens received through the airdrop is worth a little over $50. This relatively stable value is likely to remain in the same range for the next three months. This enticing incentive has resulted in a significant increase in the number of Optimism wallets holding WLD tokens, with the count reaching nearly 305,000 since July 24, according to Dune Analytics. This indicates that users are willing to sign up and scan their eyes to benefit from the token distribution.
As a newly launched token, WLD lacks sufficient trading history for a long-term price analysis. However, when examining the shorter timeframe, the token seems to be fluctuating within an ascending channel pattern. On June 29, the price was near the lower trendline of the channel, showing potential for a rebound towards the $2.35–$2.40 range, which serves as a resistance level. Breaking above this upper trendline could propel the token further towards the $2.50–$2.56 range, offering a 12% increase from the current price level.
Conversely, if the price breaks below the lower trendline, it could lead to a decline into the $2.15–$2.20 range, serving as support. A close below this lower trendline would further test the $2–$2.10 range as the next downside target, representing a 10% potential decrease from the current price level.
The stabilization of Worldcoin’s price is a result of various factors, including the token’s distribution strategy, market maker involvement, and user participation incentives. While the token still faces the challenge of establishing a consistent value, its ability to maintain stability within a specific trading range suggests a cautious optimism in the market. As the token continues to evolve, it will be interesting to see how these dynamics shape its future trajectory.