In a scathing rebuke, popular crypto security analyst ZachXBT has denounced Worldcoin (WLD), terming it “the biggest bull run scam token.”
The sleuth’s comments came after a detailed report from crypto analyst “DefiSquared” on Wednesday alleged widespread manipulation and unethical practices by the project’s team.
Notably, as per the report, the available supply of WLD stands at a mere 2.7% of its total supply of 10 billion tokens. This unusually low ratio for a major venture-backed crypto project has sparked fears of inflation and market manipulation.
Further, the reported highlighted instances of the Worldcoin team implementing a price suppression formula aimed at manipulating market conditions to benefit insiders. The sudden abolition of this price control mechanism allegedly led to a significant spike in prices, further exacerbating concerns about the project’s transparency and fairness.
The report also accused Worldcoin of misleading practices, including public denials of involvement in price manipulation despite evidence suggesting otherwise. This has cast doubt on the project’s leadership and venture capitalist backers’ ethical standards. Additionally, suspicions of insider trading were raised, citing suspicious price movements preceding major announcements related to Worldcoin’s operational policies. Notably, such practices call into question the integrity of the project’s management and the oversight provided by its investors.
In response to the allegations, ZachXBT strongly condemned venture capitalists and Worldcoin team members, accusing them of complicity in what he described as “the biggest token scam” of the current bull run.
“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,” wrote the pundit.
His remarks resonated widely within the crypto community, with some calling for further government investigations into the project and emphasizing the urgent need for stricter investor protection measures amidst ongoing uncertainties in the crypto ecosystem.
Notably, despite its rapid global adoption since launching last July, Worldcoin has been facing mounting scrutiny from multiple governments. Regulatory bodies in Britain, France, Germany, and Argentina have all launched investigations into Worldcoin’s operations. Additionally, Portugal and Spain enforced bans on the collection of personal data through ORBs. Recently, however, Kenya lifted its shadow ban on the project.
At press time, Worldcoin has yet to formally address the accusations outlined in the report, leaving investors grappling with uncertainties about the cryptocurrency’s future.
Elsewhere, WLD traded lower on Thursday in response to the reports, hovering around $2.91 after a 10% decrease in the past 24 hours. The trading volume also fell by 36% to around $586 million during the same period, according to CoinMarketCap data.
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