- The prominent crypto researcher ZachXBT has labeled popular altcoin project Worldcoin (WLD) as “the biggest scam token of the bull run”.
- This bold statement emerges just days before the project’s token unlocks commence, stirring significant concerns about its integrity and future.
- The accusations primarily stem from an extensive research piece released by a Bybit trader known as DeFi^2, alleging manipulation of the token price by the Worldcoin team.
Discover the explosive allegations facing Worldcoin and why this altcoin is under intense scrutiny just days before token unlocks.
Bold Accusations Against Worldcoin
ZachXBT has brought to light some serious allegations against Worldcoin. These claims are based on a detailed investigation by DeFi^2, highlighting that the Worldcoin team has been manipulating the token price while publicly denying any interference. According to DeFi^2’s findings, Worldcoin is set to begin insider token unlocks in just a few days. With only 2.7% of its total supply of 10 billion tokens currently in circulation, concerns about inflation and market manipulation are at an all-time high.
Worldcoin’s Questionable Practices
The investigation uncovers some alarming practices by the Worldcoin team, including implementing a price suppression formula for market makers and abruptly removing price control mechanisms to cause price spikes. Despite evidence to the contrary, the team has publicly denied any price control involvement. DeFi^2’s report also points out the artificially maintained low circulating supply, which is masked under the guise of fairness, while a significant portion of the token holders, mainly individual investors from Korea, might not fully understand the risks due to language barriers. Additionally, suspicious price movements preceding significant announcements suggest potential insider trading, raising ethical concerns about the team’s practices and those of associated venture capitalists.
Industry Reactions and Implications
ZachXBT’s accusations have sent shockwaves through the crypto community. His strong condemnation extends to all those complicit in what he describes as a major scam, criticizing both the team and the venture capitalists involved in the project. The researcher’s tweets have sparked a heated debate, with the community eagerly awaiting a response from Worldcoin’s team and their backers. Investors are reminded of the importance of comprehensive research and vigilance, especially when dealing with projects exhibiting unusual tokenomics or price behaviors. As the situation evolves, it serves as a stark reminder of the potential risks inherent in the cryptocurrency market.
Conclusion
The unfolding saga of Worldcoin highlights the critical need for transparency and ethical practices within the crypto space. ZachXBT’s revelations should prompt both investors and developers to reassess their involvement with projects displaying dubious behaviors. As the token unlocks approach, the community’s response and the project’s future actions will be telling. For now, the incident underscores the importance of due diligence and the ongoing vigilance required to navigate the volatile crypto landscape.
