- Worldcoin extended the token unlock period, leading to a significant price surge.
- ZachXBT and DeFi Squared criticized Worldcoin for alleged market manipulation.
In an unexpected turn of events, Worldcoin [WLD] started facing backlash following a controversial adjustment to its token unlock schedule, which has sparked accusations of market manipulation.
Remarking on the same, Onchain detective ZachXBT slammed Worldcoin and said,
“Shame on all of the VCs and team members who are complicit in the biggest scam token of the bull run and did nothing to prevent it.”
Here, ZachXBT is referring to FTX founder Sam Bankman-Fried, Coinbase executive Nick Tomaino, and 3AC, as VCs and team members involved in the project.
Worldcoin price manipulation allegations
For context, on the 16th of July, Tools for Humanity (TFH), the organization behind Worldcoin, revealed a significant change in the unlock timeline for 80% of WLD tokens.
Originally set for a three-year release, the new schedule extends this period to over five years, from the 24th of July 2024 to July 2028.
This led to the ease of the immediate token supply, and contributed to a dramatic 45% surge in WLD’s price within just two days, peaking at $3.22.
The impact
Needless to say, this unexpected price jump raised concerns among industry figures, who are now questioning the integrity of Worldcoin’s market practices.
Expanding on the same, DeFi Squared, a prominent DeFi insights account, published a recent blog post speaking about the Worldcoin price manipulation, describing,
“The reality is that an 11-figure valuation is only possible due to the team’s tokenomics design, and 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.”
This allegation has led to a 9% drop in WLD’s price within the last 24 hours, according to CoinMarketCap.
