Worldcoin (WLD), a project aiming for global crypto adoption, is facing a storm of controversy. Renowned crypto security analyst ZachXBT has labeled it the “biggest bull run scam token,” citing a scathing report alleging manipulative practices by the project’s team.
The controversy stems from a report by “DefiSquared,” a crypto analyst, which details concerns about Worldcoin’s tokenomics and transparency. The report highlights the low circulating supply—a mere 2.7% of the total 10 billion tokens—raising fears of inflation and market manipulation.
Furthermore, the report alleges that Worldcoin(WLD) employed a “price suppression formula” to benefit insiders. The sudden removal of this mechanism reportedly caused a price spike, further fueling concerns. Worldcoin has also been accused of misleading the public regarding its involvement in price manipulation.
These allegations cast doubt on the project’s leadership and its venture capitalist backers. Additionally, suspicious price movements preceding key announcements suggest potential insider trading.
ZachXBT harshly condemned Worldcoin(WLD) and its investors. “Shame on all the VCs and team members who were complicit in this… and did nothing to prevent it,” he wrote. This sentiment resonated within the crypto community, with calls for stricter regulations to protect investors.
Worldcoin, despite its rapid global rollout, has faced scrutiny from various governments. Regulatory bodies in Europe and South America are investigating, while Portugal and Spain have banned data collection methods used by the project.
At the time of writing, Worldcoin has not responded to the accusations. Investors are left in the dark as WLD’s price continues to slide, dropping 10% in the last 24 hours.
This controversy serves as a stark reminder of the need for transparency and ethical practices within the cryptocurrency space. Only time will tell how Worldcoin(WLD) navigates these accusations and regains investor trust.