As a seasoned researcher with extensive experience in the cryptocurrency market, I find the recent developments surrounding Worldcoin both intriguing and concerning. The sudden price surge following the announcement of the extended token unlock period is a red flag that raises serious questions about potential market manipulation.
Worldcoin faces allegations of price manipulation and scam just one day after announcing a delay in unlocking 80% of its native tokens. On July 16, Worldcoin developer Tools for Humanity (TFH) revealed changes to its token unlock schedule, extending the period for 80% of Worldcoin (WLD) tokens held by investors and team members.
Extended Lockup Period Draws Scrutiny
Originally, it was intended that these tokens would become accessible in three-year increments. But with the latest modification, this timeline has been expanded to five years, starting from July 24. Subsequently, WLD tokens will be released gradually during the subsequent four years, culminating in July 2028.
As a crypto investor, I can tell you that this update is good news for the market. Fewer tokens being released at once reduces the risk of an oversupply and potential sharp price decreases. In simpler terms, it means a more gradual release of tokens into circulation, which could help maintain a stable price floor.
Based on information from crypto monitoring platform CoinGecko, the prices of WLD surged by approximately 68% within the initial two days following the announcement, increasing from $1.90 on July 15 to reach a high of $3.20 on July 17, before experiencing a slight pullback to $3.11.
Accusations of Market Manipulation
As a crypto investor, I came across a noteworthy allegation made by Decentralized Finance (DeFi) insights account DeFi Squared on July 17th. In a detailed post, they accused the Worldcoin team of price manipulation and misleading the market.
Focusing on simplicity: enabling those in the know to persist in exploiting your fraudulent cryptocurrency, all while feigning development of beneficial technologies for mankind.
— ZachXBT (@zachxbt) July 17, 2024
Expert: ZachXBT, a well-known crypto investigator, voiced his concern over Worldcoin being hailed as the “largest fraudulent token during the bull market.” He pointed fingers at venture capitalists and team members for their alleged participation and inability to prevent this supposed scheme. According to ZachXBT, insiders were able to reap profits from the project.
The prolongation of the holding period for Worldcoin has brought significant attention and criticism towards the project. Accusations of market manipulation and insider trading have cast doubts on its trustworthiness.
Despite Worldcoin’s assertion, the extended lockup is believed to foster a steady market and cultivate a thriving ecosystem.
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2024-07-17 18:44