DeFi

Worldcoin

ZachXBT

April

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/worldcoin-faces-steep-decline">Worldcoin Faces Steep Decline</a><br></p>
<p style="text-align: justify">Worldcoin (WLD) has seen a notable downturn following severe allegations from DeFi analyst DefiSquared. The cryptocurrency’s value plummeted by approximately 18% over the past day, dropping from $6.23 to $4.64. Currently, WLD is trading at $4.85.</p> 
<h2 id="what-caused-the-sharp-price-drop">What Caused the Sharp Price Drop?</h2> 
<p style="text-align: justify">The precipitous fall in WLD’s <a href="https://finance.coin-turk.com/" rel="nofollow noopener" target="_blank">price</a>, driven by increased sell-offs, led to the liquidation of $4 million in long positions among derivative <a href="https://finance.coin-turk.com/" rel="nofollow noopener" target="_blank">investors</a>. DefiSquared’s harsh accusations are believed to have significantly contributed to this crisis.</p> 
<p style="text-align: justify">According to DefiSquared, on-chain analytics reveal that WLD loses 0.6% of its value daily due to rapidly sold grant emissions and operator demands. The analyst further warned that once team and VC locks are released within 70 days, the WLD supply could swell by 4% daily.</p> 
<h2 id="are-the-accusations-valid">Are the Accusations Valid?</h2> 
<p style="text-align: justify">The Worldcoin Foundation’s plan to sell $200 million worth of tokens for community distributions has become a central point of the controversy. DefiSquared labeled this strategy as a “manipulative low float/high FDV design,” accusing Worldcoin of enriching insiders.</p> 
<p style="text-align: justify">Another significant allegation is that Worldcoin lacks any affiliation with OpenAI, and Sam Altman is not actively involved. Nonetheless, a Bloomberg report from April indicated that both entities were considering a partnership, further complicating the situation.</p> 
<h2 id="concrete-implications">Concrete Implications</h2> 
<p style="text-align: justify"><strong>Key Points to Consider:</strong></p> 
<p style="text-align: justify"> – The steep decline in WLD’s price may impact investor confidence.<br> – The alleged daily depreciation of WLD raises concerns about long-term sustainability.<br> – The planned $200 million token sale for community distributions is under scrutiny for potentially benefiting insiders.<br> – Discrepancies about Worldcoin’s relationship with OpenAI need clarification. </p> 
<h2 id="response-awaited-from-the-worldcoin-team">Response Awaited from the Worldcoin Team</h2> 
<p style="text-align: justify">Leading <a href="https://en.bitcoinhaber.net/exploring-cryptocurrency-market-trends-predictions-for-doge-avax-and-luna">crypto analyst</a> ZachXBT has described DefiSquared’s accusations as fraudulent. The Worldcoin team has not yet responded to these claims. The crypto community is keenly observing how Worldcoin will navigate this crisis and what lies ahead for the project. An official statement from the Worldcoin team is eagerly anticipated. The DeFi community remains focused on the ensuing discussions, awaiting clarity on Worldcoin’s future trajectory.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/worldcoin-faces-steep-decline">Worldcoin Faces Steep Decline</a></h5>

Worldcoin Faces Steep Decline

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