Worldcoin takes 18% hit following revelation from DeFi analyst
|- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.