Worldcoin takes 18% hit following revelation from DeFi analyst

Source Fxstreet
May 14, 2024 20:18
  • WLD is crashing rapidly, down more than 18% in past 24 hours.
  • Worldcoin has experienced more than $4 million in long liquidations.
  • DeFi analyst compares Worldcoin's low float to SBF's playbook and says the project has no connection to OpenAI.

Worldcoin (WLD) experienced huge dumps on Tuesday following a recent accusation in an X post by DeFi analyst DefiSquared against the Worldcoin team and insiders.

Read more: Could Worldcoin price shoot up 45% ahead of OpenAI’s live stream on Monday?

WLD sheds 18% of its value

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.

Also read: Worldcoin’s four buy signals hint at a reversal rally

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.

Read more: WLD price primed for recovery as Worldcoin eyes possible partnership with PayPal and OpenAI

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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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