Worldcoin Accused of Price Manipulation

Worldcoin (WLD) is facing severe criticism, with crypto experts accusing the project and its backers of manipulating prices and calling it the "biggest scam token of the bull run." Investigator ZachXBT has named venture capitalists (VCs) and team members as enablers of fraud, including Coinbase executive Nick Tomaino, FTX founder Sam Bankman-Fried, and 3AC.

ZachXBT's claims are supported by a report from trader DefiSquared, which reveals insider trading and misleading tokenomics within the Worldcoin ecosystem. The report suggests that the Worldcoin team has been controlling the WLD price to maintain a $30 billion valuation while denying any involvement. DefiSquared notes that the team allocated most of the token supply to market makers to prevent price spikes, but later allowed prices to surge, causing a 100% rally in hours.

DefiSquared's research also points out controversial market strategies used by Worldcoin. It mentions that Tools of Humanity CEO Alex Bania denied any control over the WLD price at the Token2049 event in Dubai. Additionally, Orb Operators were found to be gathering biometric data and sending large amounts of WLD tokens to exchanges like Binance. In one instance, the WLD price spiked above $12, with one operator moving about $150,000 worth of WLD to Binance every three days, which DefiSquared cites as insider trading.

The investigator also criticizes Worldcoin's token unlock strategy, calling it a calculated move to attract retail investors. DefiSquared suggests that Worldcoin released positive news just a week before token unlocks to artificially boost prices and liquidity for insiders. The analyst hints that someone from the team or VCs may have used insider information to buy tokens before the news was announced.

In May, DefiSquared described Worldcoin as the biggest wealth transfer of this cycle, citing "predatory tokenomics." The trader highlighted that $200 million worth of tokens from the "Community" allocation were being sold to benefit the foundation. Worldcoin has been surrounded by controversy since its inception, despite its commitment to addressing major AI issues. Critics argue that the project has failed to operate transparently and ethically, leading to ongoing scrutiny from the crypto community.

ZachXBT’s and DefiSquared’s findings emphasize the importance of thorough research for traders and investors considering involvement in crypto projects. The accusations against Worldcoin underscore the potential for manipulation and fraud in the crypto market, highlighting the need for vigilance.

The backlash against Worldcoin has been intense, with many in the crypto space calling for greater accountability and transparency. The accusations of price manipulation and insider trading have damaged the project's reputation, leading to increased skepticism. As the controversy continues, Worldcoin must address these concerns to regain trust within the community. The project’s future relies on its ability to show ethical practices and a genuine commitment to solving the issues it claims to tackle.

In conclusion, the accusations against Worldcoin, led by ZachXBT and supported by DefiSquared’s research, depict a troubling picture of a project involved in price manipulation and deceptive practices. The response from the crypto community serves as a reminder of the need for due diligence and ongoing transparency in the industry.