Yesterday, the Worldcoin Foundation announced that the unlock program for WLD tokens held by Tools for Humanity (TFH) investors and team members will be extended from 3 to 5 years.
While the price of WLD experienced a huge increase after this announcement, Worldcoin now faced allegations of price manipulation and fraud.
Accordingly, DeFi analysis account DeFi Squared claimed from account X that the team behind Worldcoin engaged in price manipulation and misdirection, which led to unexpected losses and victims.
Making a long post, DeFi Squared wrote:
“…..Apparently Worldcoin realized that it was unwise for the US team to openly communicate how they control the price, so when asked by Token2049 Dubai if they track the price, the Worldcoin CEO said they have no control over it and that it is simply driven by the market.” He claimed.
This is not true. The truth is that an 11-figure valuation is only possible thanks to the team's token economy design, and the token's daily price movements have been influenced by the team in many cases due to the team actively making changes to emissions, market maker contracts, and timely announcements before unlocking.
…… Unfortunately, while this type of project behavior is not new to the crypto market, a surprising number of market participants remain unaware of the negative terms of their investments.
“This post aims to shed light on a project that deliberately supports a token price that should be lower, and for the reasons outlined, I intend to open a short position in WLD in the months following the start of unlocking.”
Commenting on DeFi Squared's WLD post, crypto researcher ZachXBT criticized VCs and team members associated with Worldcoin, calling WLD “the biggest scam token of the bull run.”
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.
— ZachXBT (@zachxbt) July 17, 2024
*This is not investment advice.
