On July 17, prominent crypto investigator ZachXBT labeled Worldcoin (WLD) as the “biggest scam token of the bull run.” This bold statement comes just days before the project’s insider token unlocks are set to begin, raising serious concerns about the project’s integrity and future.
In particular, ZachXBT‘s accusations stem from an extensive research piece published by DeFi^2, a self-proclaimed top-ranked trader on Bybit. The report details how Worldcoin’s team allegedly manipulates the token’s price while publicly denying any involvement.
As reported by DeFi^2 on July 17, Worldcoin is set to commence insider unlocks in just seven days. However, the circulating supply remains at a mere 2.7%, with 276 million circulating WLD over a 10 billion total supply. This is one of the lowest ratios ever observed for a major VC-backed cryptocurrency project, raising inflation concerns.
WLD/USDT 4-hour price chart, illustrating insider trading suspicion. Source: DeFi^2 (TradingView)
Industry reactions and implications
In this context, ZachXBT‘s accusation has sent shockwaves through the crypto community. The investigator did not mince words, stating, “Shame on all of the VCs and team members who are complicit in the biggest scam token of the bull run and did nothing to prevent it.”
Shame on all of the VCs and team members who are complicit in the biggest scam token of the bull run and did nothing to prevent it.
— ZachXBT (@zachxbt) July 17, 2024The crypto investigator also called out individual contributors to the Worldcoin project, accusing them of “scamming with WLD.”
back to scamming with WLD you mean https://t.co/gXHBY3vLdA pic.twitter.com/l5YiygHWMc
— ZachXBT (@zachxbt) July 17, 2024The future of Worldcoin
With insider unlocks looming and these serious allegations coming to light, the future of Worldcoin appears uncertain. The crypto community eagerly awaits a response from the Worldcoin team and associated venture capitalists.
As this story develops, it serves as a stark reminder of the potential risks in the cryptocurrency space. Investors are urged to conduct thorough research and remain vigilant, especially when dealing with projects that exhibit unusual tokenomics or price behaviors.
The coming weeks will be crucial for Worldcoin as it navigates these allegations and the impending token unlocks. The outcome could have far-reaching implications for the project and the broader cryptocurrency ecosystem.
WLD traded at $3.06 by press time, up 37% in the last 24 hours and 82% in a year.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
