- Worldcoin extended the token unlock period, leading to a significant price surge.
- ZachXBT and DeFi Squared criticized Worldcoin for alleged market manipulation.
As a seasoned financial analyst with over a decade of experience in the crypto market, I find the recent developments surrounding Worldcoin [WLD] quite concerning. The sudden extension of the token unlock period by Tools for Humanity (TFH), which led to a significant price surge, raises serious questions about market manipulation and transparency.
Surprisingly, Worldcoin (WLD) encountered criticism after announcing changes to its token release plan, leading some to allege market manipulation.
Remarking on the same, Onchain detective ZachXBT slammed Worldcoin and said,
It’s disappointing that some Venture Capitalists and team members were involved in the biggest fraudulent token sale during the bull market and failed to take action to stop it.
In this context, ZachXBT is describing Sam Bankman-Fried of FTX, Nick Tomaino from Coinbase, and 3AC as venture capitalists and key figures associated with the project.
Worldcoin price manipulation allegations
On July 16, Tools for Humanity (TFH), the group responsible for Worldcoin (WLD), announced a major shift in the release schedule for 80% of its coins.
The initial plan called for a three-year timeline, but the new schedule now pushes the completion date back, extending it to beyond five years, from July 24, 2024 to July, 2028.
The prompt consequence resulted in a readily available WLD token influx, significantly boosting its value by an impressive 45%, reaching a peak of $3.22 within a mere two-day span.
The impact
It’s worth noting that this sudden price increase has left some industry experts raising doubts about Worldcoin’s market transparency.
In the same vein, DeFi Squared, a well-known account providing insights into Decentralized Finance (DeFi), recently shared a blog post that delved deeper into the allegations surrounding the manipulation of Worldcoin’s price.
An 11-figure valuation for the project can be attributed primarily to its innovative tokenomics strategy created by the team. Notably, the daily price fluctuations of the token have frequently been influenced by the team’s interventions. They have made adjustments to emissions rates, market maker contracts, and strategically timed announcements prior to unlocking events.
The claim caused WLD‘s price to decrease by 9% over the past 24 hours, as reported by CoinMarketCap.
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2024-07-19 20:07