Worldcoin Faces Allegations of Price Manipulation and Market Control

Worldcoin (WLD) is under fire following allegations of price manipulation, which have raised concerns about the integrity of its market activities.

ZachXBT, a prominent crypto analyst, has condemned Worldcoin as the “biggest scam token of the bull run,” reflecting serious doubts about the token’s legitimacy.

This criticism emerged in response to claims by crypto analyst DeFi Squared, who argues that Worldcoin’s team has been actively influencing the token’s value through strategic moves.

DeFi Squared’s report suggests that Worldcoin’s team has manipulated the token’s price via deliberate changes in emission schedules and market maker agreements.

This assertion contradicts CEO Alex Blania’s claims of market neutrality. Recent developments, such as the extension of the unlock period for a large portion of team-held tokens, are viewed as potential maneuvers to drive up the token’s price, benefiting insiders before the unlock date.

The report also highlights that South Korean retail investors hold a significant portion of WLD, potentially serving as unwitting liquidity providers for insiders looking to exit their positions.

The situation is further complicated by an ongoing investigation into Worldcoin’s data collection practices, adding to the scrutiny faced by the project amid these allegations.