Worldcoin (WLD) is under intense scrutiny as several crypto experts take to social media to criticize the project and its associated venture capitalists (VCs) for promoting what they call “the biggest scam token of the bull run.” The project, which aims to address significant issues related to AI, has been plagued by controversy since its inception, with the latest allegations centering on Worldcoin price manipulation.
Onchain detective ZachXBT has been vocal in his condemnation of Worldcoin, labelling it a “scam project” following revelations that the team allegedly manipulated the WLD price. He accuses key figures, including Coinbase executive Nick Tomaino, FTX founder Sam Bankman-Fried, and 3AC, of enabling these fraudulent activities. “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,” ZachXBT wrote on X.
ZachXBT’s criticism is based on a recent report by DefiSquared, a trader on Bybit Exchange, which delves into the Worldcoin ecosystem and exposes various tactics used to manipulate the WLD price. “This research piece brings to light exactly how the team is controlling the price to still carry a $30 billion fully diluted valuation as insider unlocks begin while falsely claiming to have no involvement. All content is up to date with the latest vesting schedule changes,” the report says.
DefiSquared’s analysis also highlights the controversial tokenomics and market strategies employed by the Worldcoin team. According to the report, the team allocated most of its supply to market makers to prevent price spikes, only to later allow such spikes, causing the Worldcoin price to rally by 100% in hours. The report also criticizes Tools of Humanity CEO Alex Bania, who denied any control over the WLD price during the Token2049 event in Dubai.Further allegations point to Orb Operators gathering biometric data and transferring large amounts of WLD tokens to crypto exchanges like Binance. DefiSquared cites an incident in March when the WLD price spiked above $12, and one operator moved approximately $150,000 worth of WLD to Binance every three days. This, according to the report, is clear evidence of insider trading, with operators exploiting market conditions to liquidate their positions.
Worldcoin Price Manipulation: Expert Opinions and Future Implications
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New reports recently reported on Worldcoin’s upcoming market-moving token unlocks. DefiSquared criticizes this strategy, suggesting it is designed to entice retail investors. “With this in mind, it’s likely no coincidence that Worldcoin waited until 1 week before unlocks to release positive news. Despite being only a small change to unlock selling pressure, the news has proven incredibly effective so far in coercing retail to unwittingly provide higher prices and more liquidity for insiders to exit in a week. Worse still, it appears likely (but not proven) that someone from the team or VCs used insider information to frontrun buying the news before it was even publicly announced,” commented the analyst.
These allegations of Worldcoin price manipulation have cast a long shadow over the project, with many calling for greater scrutiny and accountability. The criticisms underscore the need for transparency and ethical conduct in crypto, especially as projects like Worldcoin continue to attract significant attention and investment.
The controversy surrounding Worldcoin price manipulation is a stark reminder of the potential pitfalls in the rapidly evolving cryptocurrency market. As more investors flock to digital assets, the importance of due diligence and scepticism cannot be overstated.
Stay connected with The BIT Journal for more updates on Worldcoin price manipulation and other developments in the crypto world. As this story unfolds, we will continue to provide in-depth analysis and insights to keep you informed.
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