Worldcoin faces scam and manipulation allegations
Full story: https://grafa.com/news/worldcoin-faces-scam-and-manipulation-allegations-249374
Worldcoin (CRYPTO:WLD) is currently embroiled in controversy, facing serious allegations of price manipulation and being labeled as the "biggest scam token of the bull run" by prominent crypto analyst ZachXBT.
These claims have ignited discussions within the crypto community, especially following a critical report by DeFi Squared, which alleges that the Worldcoin team has been actively manipulating the token’s price.
According to DeFi Squared, the Worldcoin team has been influencing WLD’s value through strategic adjustments to token emissions and well-timed announcements.
The recent extension of the unlock period for 80% of the tokens held by the team members—from three to five years—is cited as a deliberate move to manipulate prices.
This news led to a notable 30% surge in WLD’s value, suggesting that the announcement might have been timed to coerce retail investors into providing higher prices and more liquidity, potentially allowing insiders to exit their positions more favorably when the unlock period begins.
The allegations also point to the team’s use of market maker contracts and other mechanisms to control daily price fluctuations. This raises questions about the authenticity of the team’s claims that they do not control the market.
DeFi Squared further notes that Korean retail investors currently holding the WLD tokens might be unknowingly serving as exit liquidity for the team.
In addition to these concerns, the South Korean government has initiated an investigation into Worldcoin over privacy issues related to its data collection practices through the "Orb."
This situation has heightened scrutiny of Worldcoin’s market practices and the potential impact on retail investors.
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