The expert called Worldcoin the "largest scam"

ZachXBT called Worldcoin (WLD) "the largest fraudulent bull run token." The on-chain researcher referred to a report published by DefiSquared, which alleges manipulation by the team.

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

At the time of writing, representatives of the project have not responded to such accusations.

The statement was made a few days before the insiders' WLD was unblocked (July 24).

According to DefiSquared, the volume of available supply remains at 2.7% — 276 million WLD with a total value of 10 billion. This is one of the lowest ratios ever observed for a large cryptocurrency project supported by venture funds. For this reason, analysts have concerns about asset inflation.

https://forklog.com/cryptorium/chto-takoe-pokazatel-fdv-i-kak-on-vliyaet-na-tseny-kriptoaktivov

The researchers gave several examples that cast a shadow on the behavior of the Worldcoin team:

implementing a price suppression formula for market makers;the sudden cancellation of the quotation control mechanism, which led to their jump;public denial of involvement in the creation of such a tool, despite evidence to the contrary;maintaining an extremely low volume of available supply under the pretext of fairness.

One of the most disturbing points in the report is the identification of unexpected victims in this alleged scheme. According to DefiSquared, a significant part of WLD holders are Korean retail investors, many of whom may not fully understand the risks due to the language barrier.

https://forklog.com/exclusive/chto-takoe-dyor-i-pochemu-on-tak-vazhen-dlya-kriptoinvestorov

Suspicion of insider trading

The study also points to the possibility of insider trading: suspicious price movements occur immediately before important announcements. This picture raises questions about the ethical standards of the Worldcoin team and its associated venture capitalists.

As confirmation of the latter hypothesis, analysts cited the token's reaction to information about the extension of the extension of the blocking period for investors, developers of Tools for Humanity and early participants of the project from three to five years. 

That day, the price jumped by 34% at the moment, but the increase was observed before the announcement of the data.

A four-hour WLD/USDT chart showing concerns about insider trading. Data: DefiSquared.

ZachXBT agreed with the conclusions of DefiSquared

"Shame on all venture capitalists and team members who participate in the largest token scam and did nothing to prevent it," he wrote.

Earlier, ZachXBT revealed the laundering of more than $35 million received as a result of the May hacking of the DMM Bitcoin cryptocurrency exchange through the Cambodian online marketplace Huione Guarantee.

Recall that in July, the Tools for Humanity company behind Worldcoin hired four high-ranking ex-employees of Apple, Google, Meta, Tesla and X.

The Worldcoin Foundation team has also launched a preliminary version of the World Chain L2 solution for developers.

https://forklog.com/cryptorium/chto-takoe-worldcoin-i-kak-poluchit-tokeny-wld