ZachXBT says Worldcoin is full of scammers
ZachXBT is onto Worldcoin. Since its launch, the primary entity behind the project and the project itself have suffered criticism. Governments and crypto investors accused Worldcoin of privacy issues in the early days.
Today, crypto investigator ZachXBT has called Worlcoin a scam project. In several tweets, ZachXBT has shown the danger that lies with Worldcoin and its team. Replying to one post by Tiago Sada, the head of product, engineering, and design at Tools for Humanity, he says, “WorldCoin does not solve that your team is full of scammers”
ZachXBT has criticized venture capitalists and team members involved in what he describes as the largest token scam of the bull market, accusing them of being uninterested and making no attempt to prevent such scams.
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ZachXBT’s findings are based on the extensive research carried out by DefiSquared, a trader on Bybit. The research shows many strategies employed by Worldcoin to manipulate its token price.
DefiSquared’s article thoroughly analyzes Worldcoin’s tokenomics and market strategies. DefiSquared reports that Worldcoin will soon begin releasing insider unlocks, with only 2.7% of the total supply currently in circulation.
The article details how the team has carefully managed the price to uphold a $30 billion fully diluted valuation (FDV) while falsely denying participation in price manipulation.
Worldcoin launched with a circulating supply of 1.4%, or 140 million WLD tokens. The corporation distributed 100 million of these tokens to market makers, giving them a call option to purchase back a large number of tokens for a little more than $2.
ZachXBT flags incompetent WLD team practices
ZachXBT has spoken out against multiple aspects of Worldcoin’s practices. In addition, DefiSquared pointed out inconsistencies in Worldcoin’s argument for a low float, which was first supported by the necessity of preventing the unequal distribution of universal basic income (UBI).
Under a Worldcoin post on X saying, “Prioritizing simplicity helps build for every human,” ZachXBT responds “Prioritizing simplicity: allowing insiders to continue to profit off your scam token while larping as if you build tools for humanity.”
Further investigation showed that Orb Operators, who gather biometric data, have been sending substantial sums of WLD to crypto exchanges such as Binance. During a March price spike above $12, one operator was caught moving roughly $150,000 in WLD to Binance every three days.
As a result, this action shows that insiders are taking advantage of current market conditions to liquidate their positions.
DefiSquared adds that, “Evidently down the line the team realized that it’s not wise for a US team to be openly describing how they control the price, so when prompted at Token2049 Dubai whether they watch the price, Worldcoin’s CEO claims that they have no control over it, and that it’s simply driven by the market.”
Approximately 25% of the total circulating WLD is being held on Bithumb, a prominent South Korean exchange. These retail investors, who may not completely grasp Worldcoin’s tokenomics, are unknowingly supporting the token’s value.
ZackXBT also took down venture capitalists and other investors who had invested in Worldcoin. These include former Coinbase executive Nick Tomaino, FTX founder Sam Bankman-Fried, and 3AC. ZachXBT accuses them of being involved in what he describes as the “biggest scam token of the bull run.”
To that end, he says, “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.”
Cryptopolitan Reporting by Florence Muchai
