- Worldcoin faces scrutiny following the delay in unlocking 80% of its native tokens.
- The project’s developers, Tools for Humanity (TFH), announced significant changes to the token unlock schedule.
- DeFi analysts and blockchain researchers raise concerns over potential price manipulation and improper conduct.
Discover the latest developments surrounding Worldcoin and the controversy over its token unlock delay.
Worldcoin’s Token Unlock Delay Sparks Controversy
Worldcoin, a cryptocurrency project, has recently come under fire after postponing the unlocking of 80% of its native tokens. On July 16, Tools for Humanity (TFH), the development team behind the project, announced adjustments to the token unlock program. The schedule’s modification has raised serious questions within the crypto community, culminating in accusations of fraud and price manipulation.
Changes to Token Unlock Schedule
Originally, Worldcoin’s tokens were set to be unlocked over a three-year period. However, the latest update extends this period to over five years, starting from July 24. According to the new schedule, the release of WLD tokens will be gradual over the next four years, concluding in July 2028. This extension aims to mitigate the adverse effects of an excessive token supply on the market, thus preventing significant price inflation.
Price Reaction and Market Impact
The market’s reaction to the announcement was swift. Data from CoinGecko reveals that within two days of the announcement, the price of WLD surged by 68%, rising from $1.90 on July 15 to $2.81 by July 16. The token peaked at $3.20 before stabilizing at around $3.11 on July 17. Such dramatic price movements have sparked debates over the implications of the unlock delay and potential ulterior motives behind the timing of the announcement.
Allegations of Price Manipulation
On July 17, DeFi Squared, a decentralized finance analysis account, published a detailed post on platform X, alleging that the Worldcoin team engaged in misleading practices and price manipulation. The post suggested that team members might have leveraged insider information prior to public disclosure, leading to unexpected market outcomes. Though these claims remain unverified, they have added to the growing skepticism surrounding the project.
Community Reactions and Criticism
Blockchain researcher ZachXBT, known for his critical insights, has been vocal in his condemnation of Worldcoin. In his analysis, he accused venture capitalists and team members of complicity in what he termed as one of the “biggest scam tokens” of the bull market. ZachXBT’s posts have further fueled the discourse, urging the crypto community to question the integrity of the project’s stakeholders.
Conclusion
In conclusion, Worldcoin’s decision to delay the unlocking of its tokens has led to serious allegations and community backlash. While the extension aims to regulate token supply and maintain market stability, the timing and manner of the announcement have raised red flags. Moving forward, stakeholders will need to address these concerns transparently to restore confidence among investors and the broader crypto community.
