World Currency (WLD) has come under bulky criticism following a recent event that led to rumors of potential price manipulation by the team. Outstanding Crypto Detective ZachXBT also responded to allegations of price manipulation, suggesting that the Worldcoin team may be behind them.
“The Biggest Scam in Bull Rush History”
ZachXBT Lately Described Worldcoin as the “biggest bull market token scam,” while criticizing venture capitalists and team members supporting the crypto token. ZachXBT’s statements were in response to an article by crypto trader and DeFi Squared analyst who claimed that Worldcoin Team manipulates the price of crypto-token.
In his articleDeFiSquared claims the team is manipulating WLD valuecontrary to Worldcoin CEO Alex Blani’s claims that they don’t control the market. He noted that Worldcoin’s 11-figure valuation is only possible because of the team’s tokenomics project. The crypto analyst further claimed that the team has repeatedly influenced the token’s daily price fluctuations through lively changes they make to the issuance.
DeFiSquared he added that the team influences WLD’s daily price movements through market-maker contracts and timely announcements prior to unlock. The crypto trader noted that such action raises the question of why the Worldcoin team continues to deny that it does not control the market.
Meanwhile, a cryptocurrency trader suggested that the team’s recent announcement regarding the Worldcoin token unlock schedule was intended to manipulate the coin’s price. Worldcoin announced that they are extending the unlock period for 80% of tokens held by team members from three to five years.
DeFi Squared stated that it is likely no coincidence that the team waited until a week before the unlock period before releasing this positive news. WLD is known to have surged by over 30% as a result of the news. The crypto analyst noted that the news proved to be “extremely effective” in forcing retail investors to provide higher prices and more liquidity to insiders. leave your positions when the unlock period starts on July 24.
Retail investors serve as exit liquidity for the Worldcoin team
DeFi Squared revealed that Korean retail investors constitute the majority of those who currently hold the WLD token and keep the coin’s valuation so high heading into the token unlock period. He suggested that these investors may not even realize the seriousness Worldcoin Tokenomics Project and how they can possibly be used as output liquidity by team members.
Interestingly, South Korean government launched an investigation into WLD earlier this year over privacy concerns and how the team collected user data. In addition to allegations of price manipulation, the Worldcoin team was also accused of violating personal data protection law in several countries, using “Orb” to acquire user data in exchange for WLD tokens.
Featured image created with Dall.E, chart from Tradingview.com
