Prominent crypto detective ZachXBT has exposed potential insider trading by the Worldcoin team as they approach a major token unlock. This revelation builds on research by top Bybit trader DefiSquared, which shows how Worldcoin manipulated its token price.
Worldcoin launched with just 1.4% of its tokens in circulation, allocating 100 million tokens to market makers to control the price. However, they did not renew the market maker contract, leading to a price spike to nearly $12.
DefiSquared’s research reveals that insiders are sending large amounts of WLD to exchanges during price spikes, suggesting they are cashing out. Additionally, nearly 25% of circulating WLD is held by Korean retail investors, who may not fully understand the tokenomics.
Worldcoin’s recent actions, such as selling tokens to trading desks and timing positive news releases, have led to significant losses for many holders. The project’s credibility and transparency are now in question.
This scandal underscores the need for greater scrutiny and transparency in the crypto space, highlighting the risks of insider manipulation.
