Worldcoin takes 18% hit following revelation from DeFi analyst
(note: the post contains data by FXStreet)
Worldcoin suffered a hit on Tuesday as its price steadily declined, suffering about a 18% decrease, according to data from CoinGecko. WLD crashed from a high of $6.23 to $4.64 in the past 24 hours.
The price cash has triggered about $4 million in long liquidations across derivatives traders as WLD faces increased bearish pressure.
A possible reason for the crash is DeFi analyst @DefiSquared's recent accusation against Worldcoin in an X post.
He stated that WLD is being devalued by 0.6% daily through emissions of grants and operator claims, "which are sold almost immediately based on on-chain analytics." The analyst also mentioned that WLD's supply would begin inflating by 4% daily when its team and VC unlocks begin vesting in 70 days.
He highlighted that the Worldcoin Foundation would be selling $200 million worth of tokens — 18% of the circulating supply — which was initially assigned to community allocations. "The manipulative low float / high FDV design is straight out of the SBF playbook, and directly enriches insiders as they hedge their locked allocations at high valuations pre-unlock via perps / OTC," said DefiSquared.
Furthermore, he stated that Worldcoin has no affiliations with OpenAI, and Sam Altman has no active involvement in the project. However, Bloomberg reported in April that both companies were eyeing a partnership.
Prominent crypto analyst ZachXBT commented on DefiSquared's post: "Send this scam to zero with haste."
The Worldcoin team has yet to respond to requests for comments on these accusations.
