Worldcoin (WLD) has recently emerged as a subject of fervent discussion especially due to its biometric data collection through retina scans. Its launch came in amid the growing interest in decentralized finance (DeFi) and blockchain technology as well as new tokens and projects constantly striving to stand out and make a significant impact.
Among the voices guiding investors through the labyrinthine world of crypto is Jordi Alexander, a renowned crypto influencer and the chief alchemist of the Mantle Network. Recently, he stirred conversations by drawing a parallel between Worldcoin and LUNA, though not entirely for auspicious reasons.
According to the crypto influencer, Worldcoin might just be the next LUNA given some factors that comes with the token’s objective which makes it similar to LUNA which was portrayed as a “new digital currency” that needed to “maximize adoption in order to become useful.”
The most important thing you need to know about Worldcoin is that it aims to become a currency.
An unbacked currency used for monetary transactions.
A.K.A. base money. Sound familiar? pic.twitter.com/9MdLAnqqEQ
— Jordi Alexander (@gametheorizing) July 29, 2023
The Rise Of Worldcoin And Its Ambitions
Worldcoin, under the vision of Sam Altman – the brains also behind ChatGPT, has made headlines with its mission. The Worldcoin Foundation envisions creating the largest decentralized identity and financial network on the globe.
Central to this vision is Worldcoin’s native token, WLD. For the project to be successful, WLD’s widespread adoption is imperative, as is its ability to service the “Orbs” used in the new user onboarding process via retina scans.
Lets put aside the eyeball scanning weirdness.
And the VC allocations and Market Maker deals, the ZK-proofs and the Low-float tokenomics.
—-> The crypto-economics of Worldcoin are ill-considered and potentially very dangerous.
Here’s why $WLD might become the next $LUNA– 🧵 pic.twitter.com/0LTjJMGI8s
— Jordi Alexander (@gametheorizing) July 29, 2023
In his discussion on Crypto Banter, Alexander elaborated on Worldcoin’s goal to position WLD as an alternative to fiat currencies. Their agenda to become a digital base currency mimics the aspirations that LUNA once held.
The gravity of this comparison is substantial, especially when considering LUNA’s precipitous fall from grace due to financial challenges.
Trillion-Dollar Bubble In The Making?
While drawing parallels with LUNA, Alexander’s intent wasn’t to prophesize an equivalent success for Worldcoin but rather to signal the risks of potential downfall. A primary concern centers around the controversial methods that Worldcoin employs, notably, collecting biometric data through retina scans.
The rapid appreciation of WLD’s value further compounds these concerns. Since its inception just over a week ago, the token’s value has surged significantly from $0.1 to as high as trading above $5. This growth has inevitably attracted a slew of investors, catapulting its market capitalization to more than $200 million.
It’s this velocity of growth, coupled with Worldcoin’s overarching ambition, that leads Alexander to opine that the cryptocurrency might be veering into “bubble” territory. He even suggested the possibility of it snowballing into a trillion-dollar bubble if unchecked.
Worldcoin (WLD) price is moving sideways on the 4-hour chart. Source: WLD/USDT on TradingView.com
Featured image from Unsplash, Chart from TradingView
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