Worldcoin (WLD) experienced significant declines following harsh accusations from DeFi analyst DefiSquared. The WLD price dropped approximately 18% in the last 24 hours, falling from $6.23 to $4.64. As of writing, WLD coin is trading at $4.85.
Sudden Drop Affects Long Positions in WLD
This sudden drop, resulting from increased selling pressure on WLD, triggered the liquidation of $4 million in long positions among derivative investors. DefiSquared’s accusations are seen as one of the main factors in the crisis.
The accusations include claims that WLD loses 0.6% of its value daily through quickly sold grant emissions and operator demands based on on-chain analytics. The analyst also suggested that with the release of team and VC locks within 70 days, WLD supply would increase by 4% daily.
Focus of the Accusations
The announcement by the Worldcoin Foundation to sell $200 million worth of tokens allocated for community distributions has become one of the focal points of the accusations. DefiSquared described this move as a “manipulative low float/high FDV design,” accusing the project of directly enriching insiders.
Another notable point among the accusations is the claim that Worldcoin has no connection with OpenAI and that Sam Altman is not actively involved in the project. However, Bloomberg’s report in April about both companies seeking a partnership complicates the situation further.
Response Awaited from the Worldcoin Team
Leading crypto analyst ZachXBT described DefiSquared’s accusations as fraud, while the Worldcoin team has yet to respond to these allegations. How Worldcoin will manage this crisis and what the future holds for the project remains uncertain.
However, the DeFi community’s attention is currently focused on these discussions. To paint a clear picture of Worldcoin’s future, the impacts of this severe blow to the project need to be closely monitored. Everyone is now waiting for an official statement from the Worldcoin team. Let’s see how the WLD team will respond to these claims.
