Bitrabo Editorial
Worldcoin (WLD) faces criticism and suspicion amidst accusations of potential price manipulation by its team members. Notable crypto analyst ZachXBT expressed concerns regarding these allegations, hinting at the possibility that the Worldcoin team may be involved in manipulative practices.
Scathing Criticism of Worldcoin
ZachXBT labeled Worldcoin as the “biggest scam token of the bull run” and highlighted the involvement of venture capitalists and team members in supporting this crypto token. This reaction came after crypto trader DeFi Squared raised concerns about potential price manipulation orchestrated by the Worldcoin team.
DeFiSquared’s analysis suggested that the team exerts control over WLD’s value, contradicting Worldcoin CEO Alex Blania’s statements denying market influence. The analyst pointed out that the substantial valuation of Worldcoin is largely attributed to the team’s tokenomics strategy. Furthermore, DeFiSquared claimed that the team frequently impacts the token’s daily price fluctuations through alterations in emissions.
The article by DeFiSquared also mentioned that the team uses market maker contracts and well-timed announcements prior to unlocks to influence the daily price movements of WLD. This behavior raises doubts about the team’s denial of market manipulation.
The recent announcement by Worldcoin regarding the extension of the unlock period for 80% of team-held tokens aimed at manipulating the coin’s price raised suspicions. According to DeFi Squared, releasing this news just a week before the unlock period led to a significant surge in WLD’s value, affecting retail investors and liquidity for insiders looking to exit their positions when the unlock period commences on July 24.
Retail Investors Unknowingly Supporting Worldcoin Team’s Exit Strategy
DeFi Squared pointed out that Korean retail investors predominantly hold WLD tokens, contributing to the coin’s elevated valuation as the token unlock period approaches. These investors may not fully comprehend Worldcoin’s tokenomics design and how they could unknowingly serve as exit liquidity for team members.
Additionally, earlier this year, the South Korean government initiated an investigation into WLD concerning privacy issues and the team’s data collection practices. Alongside the manipulation accusations, the Worldcoin team faces allegations of breaching data privacy laws in multiple countries by utilizing the “Orb” to acquire user data in exchange for WLD tokens.