Eye scanning and human identification project Worldcoin is facing accusations of price manipulation and fraud.
These allegations come just a day after the project announced it would delay the unlocking of 80% of its native token, WLD.
Changes in Native Token Unlock Schedule
On July 16, Tools for Humanity (TFH), the developer of Worldcoin, announced changes to the unlock schedule of its native token. The organization extended the unlock schedule for 80% of the Worldcoin (WLD) tokens held by investors and team members. Instead of releasing the tokens over three years, the unlock will now be spread out over more than five years, starting on July 24. This will gradually unlock WLD tokens over the next four years, with an end date in July 2028.
The extension means fewer tokens will immediately hit the market, preventing a surge in supply that could significantly lower the price.
A day after this announcement, the price of WLD tokens increased by 68% in just two days, according to crypto data tracker CoinGecko. The price of WLD rose from $1.90 on July 15 to $2.81 on July 16, and peaked at $3.20 on July 17 before correcting to $3.11.
Engaging in price manipulation and deception
On July 17, DeFi insights account DeFi Squared published a lengthy post on X alleging that the Worldcoin team was engaging in price manipulation and deception. The account stated that the token’s daily price movements were often influenced by the team through issuance changes, market maker contracts, and well-timed announcements before unlocks.
The DeFi Insights account also suggested that someone within the team may have “used insider information to get ahead of the news” before it went public.
“Biggest scam of the bull run”
Crypto researcher ZachXBT eventually weighed in on the discussion, accusing venture capitalists and team members of complicity in what he called “the biggest scam of the bull run.” ZachXBT argued that these individuals should be ashamed of their role and lack of action to prevent the situation. He also responded to a Worldcoin thread in which he claimed that the project allowed insiders to profit from the alleged scam.
The Worldcoin project remains under fire as allegations of price manipulation and fraud continue to be investigated.
Source: https://newsbit.nl/worldcoin-beschuldigd-van-prijsmanipulatie-en-oplichting/
