Worldcoin, a new cryptocurrency, has been facing serious accusations of manipulation and even being a scam.
Manipulation Allegations
Crypto sleuth ZachXBT has called Worldcoin the “biggest scam token of the bull run,” echoing concerns raised by crypto analyst DeFi Squared. DeFi Squared claims the Worldcoin team is actively manipulating the price of their token, WLD, despite their CEO’s denials.
Here’s how they allegedly do it:
- Tokenomics: DeFi Squared argues that Worldcoin’s token design is intentionally set up to benefit the team, creating an artificially high valuation.
- Emissions: The team supposedly influences the daily price of WLD by adjusting the rate at which new tokens are released.
- Market Maker Contracts: The team uses these contracts, along with strategically timed announcements, to manipulate the price.
- Unlock Schedule: The recent announcement to extend the unlock period for team members’ tokens was likely timed to boost the price before the unlock date. This allowed the team to cash out at a higher price, leaving retail investors holding the bag.
Korean Investors: Unwitting Liquidity Providers?
DeFi Squared believes Korean retail investors are unknowingly providing liquidity for the Worldcoin team to exit their positions. These investors may not fully understand the tokenomics and how they are being used.
Privacy Concerns
Beyond price manipulation, Worldcoin has also been accused of violating data privacy laws in several countries. The team uses a device called the “Orb” to collect user data in exchange for WLD tokens. This has led to an investigation by the South Korean government.
The allegations against Worldcoin are serious and raise concerns about the project’s legitimacy. Investors should be cautious and do their own research before investing in WLD. /p>
