Crypto Investigator Calls Worldcoin the ‘Biggest Scam’
On July 17, a well-known crypto investigator named ZachXBT called Worldcoin (WLD) the “biggest scam token of the bull run.” This shocking statement came just days before the project’s insider token unlocks were set to begin. This news has raised many concerns about the project’s integrity and future.
Research Reveals Price Manipulation
ZachXBT’s accusations are based on a detailed research report by DeFi^2, a top-ranked trader on Bybit. According to the report, Worldcoin’s team is allegedly manipulating the token’s price while publicly denying any involvement.
On July 17, DeFi^2 reported that Worldcoin is set to start insider unlocks in just seven days. However, the circulating supply remains at only 2.7%, with 276 million WLD circulating out of a total supply of 10 billion. This is one of the lowest ratios ever seen for a major venture capital (VC)-backed cryptocurrency project, which raises inflation concerns.
Worldcoin Price Control and Insider Trading
The research piece by DeFi^2 highlights several concerning practices by the Worldcoin team, including:
- Implementing a price suppression formula for market makers.
- Suddenly removing the price control mechanism, leading to a price spike.
- Publicly denying involvement in price control despite evidence to the contrary.
- Maintaining an extremely low circulating supply under the guise of fairness.
One of the most alarming concerns in the report is the identification of unexpected victims in this alleged scheme. According to DeFi^2, a significant portion of WLD holders are Korean retail investors, many of whom may not fully understand the risks due to language barriers.
Moreover, the research suggests potential insider trading, with suspicious price movements occurring just before significant announcements. This pattern raises questions about the ethical practices of the Worldcoin team and associated venture capitalists.
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.”
The crypto investigator also called out individual contributors to the Worldcoin project, accusing them of “scamming with WLD.”
The 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 $2.73 by press time, up 43% in the past week.
Understanding the Allegations
The research by DeFi^2 goes into great detail about how the Worldcoin team allegedly manipulates the token’s price. They implemented a price suppression formula for market makers and then suddenly removed it, causing the price to spike. Despite clear evidence, the team publicly denied any involvement in price control. They also maintained a very low circulating supply under the guise of fairness.
One of the most disturbing findings in the report is the impact on Korean retail investors. Many of these investors might not fully understand the risks involved due to language barriers. This makes them unexpected victims of the alleged scheme.
The research also points to potential insider trading. Suspicious price movements occurred just before major announcements, suggesting that some insiders might have had advance knowledge. This raises serious ethical questions about the actions of the Worldcoin team and their associated venture capitalists.
The Broader Impact on the Crypto Community
ZachXBT’s accusations have had a significant impact on the crypto community. By calling out the Worldcoin project and its contributors, he has brought attention to the potential risks involved in investing in such projects. The strong language used by ZachXBT, including phrases like “biggest scam token” and “scamming with WLD,” has resonated with many in the community.
These allegations highlight the importance of due diligence when investing in cryptocurrency projects. Investors are reminded to thoroughly research any project before committing their funds. Projects with unusual tokenomics or price behaviors should be approached with caution.
The Road Ahead for Worldcoin
The future of Worldcoin is uncertain as it faces these serious allegations. The upcoming insider token unlocks will be a critical moment for the project. How the Worldcoin team and their venture capitalists respond to these allegations will be closely watched by the crypto community.
This situation serves as a reminder of the potential risks and complexities in the cryptocurrency space. Investors should stay informed and vigilant, ensuring they understand the projects they invest in and the possible risks involved.
Conclusion
The allegations against Worldcoin by ZachXBT and DeFi^2 have raised serious concerns about the project’s integrity and future. With accusations of price manipulation, insider trading, and the potential victimization of retail investors, the crypto community is watching closely. The coming weeks will be crucial for Worldcoin as it navigates these challenges and the impending token unlocks. The outcome will not only affect Worldcoin but also have broader implications for the entire cryptocurrency ecosystem.
