Accusations of price manipulation arise as WLD value drops 13.8% amid concerns about insider control and ethical issues.
Worldcoin, a cryptocurrency project, has recently come under fire for making changes to its token unlock schedule. This move has sparked accusations of price manipulation and has led to a significant drop in the value of its token, WLD.
Worldcoin is a cryptocurrency project that aims to create a new global digital currency. The project has gained attention for its unique approach, which includes the collection of biometric data to ensure that each person can only claim a certain amount of the currency. However, recent changes to the project's tokenomics have raised concerns among investors and critics.
Worldcoin recently altered its token unlock schedule, which determines when and how new tokens are released into the market. Critics argue that these changes will allow insiders to control a significant portion of the circulating supply within a year. Specifically, it is estimated that insiders could control up to 60% of the circulating supply, which raises concerns about potential market manipulation.
One of the main criticisms comes from a crypto personality known as Defi Squared. Defi Squared has accused Worldcoin of using a high fully diluted valuation (FDV) as a strategy for price manipulation. The FDV is a measure of the total value of all tokens, including those not yet in circulation. By controlling a large portion of the circulating supply, insiders could potentially manipulate the market to their advantage.
The criticism and concerns about market manipulation have had a noticeable impact on the value of Worldcoin's token, WLD. Over a 24-hour period, the price of WLD dropped by 13.8%. This sharp decline highlights the market's reaction to the perceived risks associated with the changes to the token unlock schedule.
In addition to the specific concerns about the token unlock schedule, critics have also raised broader issues about the project's tokenomics. These include the potential for strategic announcements to influence the market and the role of market maker contracts. Furthermore, the collection of biometric data has also been a point of contention, with some questioning the ethical implications of this practice.
