• WLD’s value drops by 18%: Worldcoin (WLD) has taken a significant hit, plunging by over 18% within the last 24 hours, marking a substantial downturn in its value.
  • $4 million in long liquidations: The sharp decline in Worldcoin’s price has resulted in more than $4 million worth of long liquidations, as traders face intensified bearish pressure.

On Tuesday, Worldcoin, a cryptocurrency that had been gaining traction in the digital market, experienced a sudden and drastic decline in its value. According to data from CoinGecko, the price of WLD plummeted from a high of $6.23 to $4.64 within a mere 24-hour period, signaling an alarming 18% decrease.

This unexpected crash has triggered a cascade of long liquidations totaling over $4 million across derivatives traders, underscoring the growing bearish sentiment surrounding Worldcoin.

The catalyst for this downturn stems from revelations made by DeFi analyst DefiSquared in a recent exposé posted on the platform X. DefiSquared’s accusatory claims have sent shockwaves through the cryptocurrency community, casting doubt on the integrity of Worldcoin’s operations and its purported affiliations.

According to DefiSquared, Worldcoin’s value is being systematically eroded by the daily emissions of grants and operator claims, which are promptly offloaded into the market, as evidenced by on-chain analytics. Furthermore, the analyst warns of an impending inflationary surge, projecting a daily increase of 4% in WLD’s supply once the team and venture capital unlocks commence in 70 days.

Of particular concern is DefiSquared’s assertion that the Worldcoin Foundation intends to sell off $200 million worth of tokens, equivalent to 18% of the circulating supply, originally earmarked for community allocations. Drawing parallels to established market manipulation tactics, DefiSquared likened Worldcoin’s strategy to the playbook of SBF, insinuating that insiders stand to profit handsomely as they hedge their locked allocations at inflated valuations before unlocking.

Moreover, DefiSquared debunked any purported ties between Worldcoin and OpenAI, refuting claims of active involvement by Sam Altman, despite earlier reports hinting at a potential partnership between the two entities.

In response to DefiSquared’s damning allegations, prominent crypto analyst ZachXBT minced no words, calling for swift action to obliterate what he labeled as a “scam” currency.

Despite mounting pressure and calls for accountability, the Worldcoin team has thus far remained silent, declining to address the accusations leveled against them. As the controversy continues to unfold, investors and enthusiasts alike are left grappling with uncertainty, unsure of the true trajectory of Worldcoin and its place within the ever-evolving landscape of digital assets.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.