WorldCoin Token Scam: Worldcoin Accused of Scam After Extending Token Lock by 2 Years

ZachXBT, a crypto detective, lambasted Worldcoin of insider trading after discovering the latest token unlock. Worldcoin token scam allegations surfaced as prominent crypto investigator ZachXBT recently exposed the Worldcoin team in an expose. It raised concerns about possible insider trading and dubious tactics after creators allegedly extended token lock time by 2 years as it approached a major token release. The findings of leading ByBit trader DefiSquared form the foundation of ZachXBT’s investigation. The investigation reveals multiple strategies employed by Worldcoin to influence the value of its token. In addition, it makes one wonder about the sponsors’ intentions and the project’s credibility.

WorldCoin Token Scam: Insider Trading Allegations

The article by DefiSquared examines Worldcoin’s tokenomics and market tactics in depth. According to DefiSquared, Worldcoin is reportedly going to start insider unlocks with only 2.7% of the supply in circulation. While falsely claiming innocence, the team has kept the price under tight control. As detailed in the article, this resulted in a fully diluted valuation (FDV) of $30 billion.

At its launch, Worldcoin had 140 million WLD coins or 1.4% of the total supply. Market makers received 100 million tokens from the team. This included a call option to repurchase many coins at over $2. This plan was put into place to keep the price from increasing too much. Worldcoin CEO Alex Blania has previously broached this strategy. To prevent the price from “spiking to $10,” which Blania called “horrific,” he said it was essential. However, this wasn’t enough to convince Worldcoin to keep its market maker contract past December. Consequently, the price skyrocketed to about $12 in just one month.

Discrepancy In Statements & Actions

The recent analysis shows that Worldcoin’s public statements and practices differ greatly. The team says they have little say in the token price. However, their actions around emissions, tokenomics, and market maker contracts give a different impression, adding to the suspicion of a worldcoin token scam. There are concerns over the project’s openness and the motivations for its limited circulation due to this disparity.

ZachXBT has criticised several parts of Worldcoin’s practices. Also, DefiSquared pointed out that Worldcoin’s low float justification is inconsistent. This was originally based on the need to avoid UBI distribution injustice. According to his research, insider emissions will make up more than 60% of the supply in circulation in the next year. Insiders, not UBI recipients, reaped the benefits of this.

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The Orb Operators are in charge of gathering biometric data. Upon closer inspection, it becomes apparent that they haven’t stayed true to their course, escalating concerns about a worldcoin token scam. They have been transferring substantial quantities of WLD to crypto exchanges such as Binance. One operator was found sending Binance $150,000 worth of WLD every three days during the March price spike to $12. So, insiders appear to cash out their interests by taking advantage of the current market conditions.

The Allegations Against Sam Bankman-Fried & VCs

The large amounts of WLD held by ordinary Korean investors is one of the most disturbing results. Almost a quarter of all WLD in circulation are held on Bithumb, a prominent South Korean exchange. These retail investors have unwittingly supported Worldcoin’s token price since. Yet, they invest in the cryptocurrency without fully comprehending its tokenomics.

The fact that the Worldcoin Foundation is actively selling tokens to trading desks makes matters worse. As a result, the value of many holders dropped by 70-80% in the past few months. The market’s reaction to these revelations will be crucial in addressing the alleged worldcoin token scam and restoring trust. Positive news releases from Worldcoin were also highlighted as having strange timing by DefiSquared’s analysis.

Worldcoin revealed a small adjustment to the unlock selling pressure just one week before the insider unlock. This significantly enhanced retail interest and insiders’ ability to cash out. The investigator concludes that an associate or team member may have profited from this news. These are persons who had access to confidential information before its public announcement. He brought attention to the WLD price rise just one day before the announcement to support his claim.

Worldcoin asserted in an X post that it will develop for every human by prioritising simplicity. In response, ZachXBT said the initiative hid behind its “Worldcoin token scam.” He also noted that its insiders utilised it to enrich themselves while they pretended to develop humanitarian tools. He has branded the Worldcoin team and their investors “scammers” and has spoken out against them, adding to the suspicion of a worldcoin token scam.

Concerns of a worldcoin token scam are becoming more prominent as the gap between public statements and actual practices widens. Investors in Worldcoin, including venture capitalists, were also subject to his wrath. These include FTX founder Sam Bankman-Fried, former Coinbase exec Nick Tomaino and 3AC. What ZachXBT terms the “biggest scam token of the bull run” is something they’re all involved in. The BIT Journal reports it will be increasingly important as the crypto ecosystem develops.