Key Takeaways
Worldcoin’s (WLD) token has fallen more than 97% from its peak, trading at $0.26 after prominent on-chain investigator ZachXBT accused the Sam Altman-backed project of predatory tokenomics and exploiting vulnerable populations for their biometric data.
"No one seems to mention Scam Altman’s other company WorldCoin," ZachXBT said in a post on X, responding to Elon Musk’s criticism of the OpenAI chief executive. The investigator alleges Worldcoin launched its WLD token with a "predatory low float crypto token that was on par with SBF / FTX companies," preying on people in low-income countries by exchanging small token amounts for iris scans.
The project’s tokenomics and insider sales fuel the allegations. Worldcoin launched with just 1.4% of its 10 billion token supply in circulation, giving it a fully diluted valuation of $22 billion with minimal liquidity, according to research cited in the source material. On-chain data shows the Worldcoin Foundation and related entities have conducted large over-the-counter sales, including an 85.45 million WLD sale for $25 million at an average price of just $0.293. Another subsidiary sold $65 million in WLD at an average price of $0.27, a 76% discount to its price during a May 2025 fundraising round.
The most significant risk may be ahead, as a major token unlock scheduled for July 23, 2026, is set to release roughly 52.5% of WLD’s total supply. The vesting of approximately 4.79 million WLD per day represents about 169% of the current circulating supply, an event analysts have flagged as one of the most bearish unlocks in recent crypto history.
Worldcoin’s stated goal was to use its silver Orb device to scan irises and create a "proof-of-personhood" system to distinguish humans from AI online. However, the method of exchanging iris scans for WLD tokens in developing nations led to what critics, including an MIT Technology Review investigation, called "deception, exploited workers, and cash handouts." This dynamic quickly spawned a black market for verified World App accounts, with credentials sourced from countries like Cambodia and Kenya being sold on platforms like Taobao for as little as $1.40, undermining the project's entire premise.
While the token’s value collapsed for retail holders, on-chain data suggests insiders were liquidating holdings at scale. In March 2026, Arkham Intelligence data showed movements of 117 million WLD worth about $38.7 million in OTC transactions. An analysis by Mlm onchain on Telegram highlighted a multisig wallet linked to the World Foundation selling 85.45 million WLD for $25 million through FalconX, depositing another 81.26 million WLD to Binance, and holding 40.65 million more, likely for future sales. Today, over 90% of all WLD is held by the top 100 wallets, according to market data.
The allegations against Worldcoin are unfolding as Sam Altman’s separate legal battle with Elon Musk over the future of OpenAI goes to trial. Musk is suing Altman for up to $134 billion, alleging he was deceived into funding a company that abandoned its nonprofit mission for commercial gain.
This article is for informational purposes only and does not constitute investment advice.
