On July 17, prominent crypto investigator ZachXBT labeled Worldcoin (WLD) as the “biggest scam token of the bull run.” This bold statement comes just days before the project’s insider token unlocks are set to begin, raising serious concerns about the project’s integrity and future.
In particular, ZachXBT‘s accusations stem from an extensive research piece published by DeFi^2, a self-proclaimed top-ranked trader on Bybit. The report details how Worldcoin’s team allegedly manipulates the token’s price while publicly denying any involvement.
As reported by DeFi^2 on July 17, Worldcoin is set to commence insider unlocks in just seven days. However, the circulating supply remains at a mere 2.7%, with 276 million circulating WLD over a 10 billion total supply. This is one of the lowest ratios ever observed for a major VC-backed cryptocurrency project, raising inflation concerns.
Worldcoin price control, misdirection, and insider trading
Notably, the research piece highlights several concerning practices by the Worldcoin team, including:
- Implementing a price suppression formula for market makers
- Suddenly removing the price control mechanism, leading to a price spike
- Publicly denying involvement in price control despite evidence to the contrary
- Maintaining an extremely low circulating supply under the guise of fairness
One of the most alarming concerns in the report is the identification of unexpected victims in this alleged scheme. According to DeFi^2, a significant portion of WLD holders are Korean retail investors, many of whom may not fully understand the risks due to language barriers.
Moreover, the research suggests potential insider trading, with suspicious price movements occurring just before significant announcements. This pattern raises questions about the ethical practices of the Worldcoin team and associated venture capitalists.
Industry reactions and implications
In this context, ZachXBT‘s accusation has sent shockwaves through the crypto community. The investigator did not mince words, stating, “Shame on all of the VCs and team members who are complicit in the biggest scam token of the bull run and did nothing to prevent it.”
The crypto investigator also called out individual contributors to the Worldcoin project, accusing them of “scamming with WLD.”
The future of Worldcoin
With insider unlocks looming and these serious allegations coming to light, the future of Worldcoin appears uncertain. The crypto community eagerly awaits a response from the Worldcoin team and associated venture capitalists.
As this story develops, it serves as a stark reminder of the potential risks in the cryptocurrency space. Investors are urged to conduct thorough research and remain vigilant, especially when dealing with projects that exhibit unusual tokenomics or price behaviors.
The coming weeks will be crucial for Worldcoin as it navigates these allegations and the impending token unlocks. The outcome could have far-reaching implications for the project and the broader cryptocurrency ecosystem.
WLD traded at $3.06 by press time, up 37% in the last 24 hours and 82% in a year.
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