Worldcoin Faces Scam Allegations

Worldcoin faces scam allegations after delaying the activation of 80% of its native tokens; Worldcoin is now facing accusations of price manipulation.

A day after the project delayed activating 80% of its native token, Worldcoin, an eyeball-scanning human identification project, faces allegations of price manipulation and scam.

Tools for Humanity (TFH), the developer of Worldcoin, disclosed modifications to its native token release schedule on July 16. The organization extended the release schedule for 80% of the Worldcoin (WLD) tokens held by its investors and team members.

Initially, the tokens were intended to be released over three years. In contrast, the most recent update extends the unlocking process to over five years, commencing on July 24. WLD tokens will be gradually activated over the next four years, culminating in July 2028.

The extension will prevent an instantaneous increase in supply that could lower the price by reducing the number of tokens released into the market.

According to CoinGecko, a crypto data tracker, WLD prices experienced a 68% increase in just two days the day following the announcement, establishing it as one of the top gainers. The value of WLD increased from $1.90 on July 15 to $2.81 on July 16. On July 17, the token’s price rose to $3.20 before reversing to $3.11.

Worldcoin is referred to as the “largest scam” by ZachXBT.

DeFi Squared, a decentralized finance (DeFi) insights account, published an extensive post on X on July 17. The post alleged that the team behind Worldcoin had engaged in price manipulation and misdirection, resulting in unexpected victims. The account expressed the following:

“[…] the token’s daily price moves have been on many occasions influenced by the team as they actively make changes to emissions, market maker contracts, and well timed announcements before unlocks.”

The DeFi insights account also stated that it is probable, but not yet confirmed, that a team member “used insider information to front-run buying the news” before its announcement.

ZachXBT, a crypto investigator, also contributed to the conversation. According to the blockchain sleuth, venture capitalists and team members who were complicit in “the biggest scam token of the bull run” and did not take any action to prevent it should all feel ashamed.

The online figure also responded to a Worldcoin thread claiming that the project had permitted insiders to continue to profit from its “scam.”

Cointelegraph contacted Worldcoin for comment, but they did not respond immediately.