Worldcoin Faces Allegations of Price Manipulation Following Token Unlock Delay
In a recent development that has stirred the cryptocurrency community, Worldcoin, the project renowned for its innovative eyeball-scanning identification system, is now under scrutiny over allegations of price manipulation. This controversy emerged shortly after Tools for Humanity (TFH), the developers behind Worldcoin, announced a significant delay in the unlocking schedule of 80% of its native tokens.
Extended Token Unlock Schedule Raises Eyebrows
TFH aims to prevent a sudden increase in supply that could potentially depress the token’s price with this delayed release strategy. However, this move has sparked suspicions among investors and market analysts. Following the announcement, the token’s value surged by 68% in just two days, climbing from $1.90 to a peak of $3.20 before settling at $3.11.
Accusations of Market Manipulation Surface
The timing of the price surge has prompted allegations of market manipulation from several quarters. A notable accusation came from the DeFi insights platform, DeFi Squared, which suggested on X (formerly Twitter) that Worldcoin’s team might be influencing the token’s price through strategic announcements and adjustments to market mechanisms.
DeFi Squared’s post highlighted concerns that “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 post further speculated about the possibility of insider trading activities, where individuals privy to the unlock delay could have capitalized on the information before it became public knowledge.
Crypto Investigator ZachXBT Weighs In
Renowned cryptocurrency investigator ZachXBT also weighed into the controversy, labeling the situation as potentially “the biggest scam token of the bull run.” He criticized venture capitalists and team members associated with Worldcoin for their roles in what he perceives as a scheme that allowed insiders to profit at the expense of ordinary investors.
Despite reaching out to Worldcoin for comments, responses were not forthcoming at the time of reporting. This lack of communication has only fueled the speculative fires surrounding the project’s recent decisions.
Market Impact and Investor Sentiment
For more insights into how these developments are reshaping the landscape of cryptocurrency investments and the importance of transparency in crypto operations, visit our detailed analysis on Worldcoin’s regulatory and talent challenges.
As the situation unfolds, the cryptocurrency community remains vigilant, watching closely how Worldcoin manages these accusations and what it could mean for the future of blockchain-based identity verification systems.
