Worldcoin (WLD) Alleged Price Manipulation Sparks Criticism and Investigations

• Worldcoin (WLD) faces significant backlash amid allegations of price manipulation orchestrated by its team.
• Prominent crypto on-chain analyst ZachXBT has openly criticized Worldcoin, raising questions about its legitimacy.
• Crypto analyst DeFi Squared accuses Worldcoin of manipulating its token value through strategic market moves.

Worldcoin faces allegations of price manipulation, raising concerns about the legitimacy and ethics of its operational tactics in the crypto market.

Worldcoin Accused of Price Manipulation

Worldcoin (WLD), a prominent cryptocurrency, has recently come under scrutiny following accusations of price manipulation. The allegations, led by notable on-chain analyst ZachXBT, suggest that the Worldcoin team may be actively influencing the token’s market value. These claims were first highlighted by another respected crypto trader and analyst, DeFi Squared, who accused the team of deceitfully controlling WLD’s valuation.

Claims of Market Manipulation

DeFi Squared’s analysis pointed to several incidents where the Worldcoin team allegedly manipulated the token’s daily price moves. Despite the public statements by Worldcoin CEO Alex Blania, asserting no market control, the team’s actions reportedly tell a different story. DeFi Squared argued that the apparent 11-figure valuation of Worldcoin results from deliberate tokenomics strategies designed by the team. He also suggested that the team’s tactics include altering emissions and making timely announcements to sway the market just before crucial unlocks.

The Role of Market Maker Contracts

According to DeFi Squared, Worldcoin’s manipulation extends to leveraging market maker contracts and making well-timed announcements. These tactics are reportedly aimed at creating favorable market conditions just before token unlocks. For instance, the recent announcement extending the unlock period for 80% of tokens held by team members was seen as a ploy to manipulate the coin’s price. This extension from three to five years, announced just a week prior to the unlock period, led to a significant price surge of over 30%.

Impacts on Retail Investors

The allegations also shed light on the implications for retail investors, particularly in South Korea who hold a significant portion of WLD tokens. DeFi Squared suggested that these investors might be unaware of the underlying tokenomics and the potential risks associated with being used as ‘exit liquidity’ by the team. This situation raises serious concerns about the fairness and transparency in the handling of Worldcoin’s market activities.

Legal Scrutiny and Data Privacy Concerns

Beyond price manipulation, Worldcoin is also facing legal challenges regarding data privacy. Earlier this year, the South Korean government launched an investigation into Worldcoin over privacy violations. There are concerns about how the team collects user data through the “Orb” in exchange for WLD tokens. This practice has raised alarms about potential violations of data privacy laws in several jurisdictions.

Conclusion

The ongoing allegations against Worldcoin could significantly impact its reputation and market standing. As accusations of price manipulation and data privacy violations continue to surface, it remains crucial for investors to remain vigilant and informed. The unfolding developments highlight the need for greater transparency and ethical practices within the crypto market.