‘Prey’ on users? ZachXBT’s Worldcoin criticism puts WLD under pressure

Sam Altman, Founder of leading AI startup OpenAI, is facing renewed scrutiny within the crypto community as concerns surrounding his digital identity project, Worldcoin, intensify. Criticism has grown over how user data is handled, particularly biometric information collected through the platform. At the same time, questions around the project’s tokenomics, specifically the structure and distribution of its native token Worldcoin [WLD], have raised concerns about potential insider activity affecting supply dynamics. From biometric incentives to alleged exploitation Criticism of Altman escalated after a pseudonymous on-chain investigator, ZachXBT, publicly accused the project of exploiting collected data. His remarks came in response to a post on X by Elon Musk, who referred to Altman as “Scam Altman.” Worldcoin operates by scanning users’ irises through a device known as the “Orb,” creating a unique digital identity designed to verify human presence online. In return, users receive WLD tokens, part of a broader effort to build a global identity and financial network. According to ZachXBT, however, the system has been used to “prey” on individuals in low-income regions. The investigator argued that a tool originally intended to verify human identity has instead contributed to the emergence of a black market for verified accounts. Moreover, the investigator further claimed that biometric-linked accounts are now being traded on underground channels. Pointing to Telegram as a key venue for such activity, ZachXBT noted, The actual black market for KYC’d accounts is always on Telegram if you know where to look Tokenomics concerns deepen Beyond data usage, scrutiny has also focused on Worldcoin’s token structure. ZachXBT described WLD as a “low float” asset and compared its setup to entities associated with Sam Bankman-Fried and the now-defunct FTX, highlighting concerns over concentrated supply and ongoing issuance. He noted that token supply continues to expand at what he described as unsustainable levels, while insiders reportedly offload holdings through over-the-counter (OTC) transactions. Blockchain intelligence platform Arkham Intelligence reported that the project’s team has sold approximately $65 million worth of WLD over the past 90 days. Data from CoinMarketCap showed that just 10 wallets control roughly 69% of the token’s supply, raising further centralization concerns. Skepticism around WLD’s tokenomics is not new. In 2024, ZachXBT questioned the project’s vesting transparency, noting that certain details appeared restricted or geo-blocked for some users. Recent data from DeFiLlama indicated that WLD undergoes continuous daily token unlocks. The project releases approximately $1.21 million worth of tokens into circulation each day and will continue this schedule until July 2029, when daily unlocks will decline to around $402,000. WLD price performance remains under pressure Worldcoin’s market performance has mirrored the growing uncertainty. On the 5th of April, WLD fell to an all-time low of $0.2399, a sharp decline from its peak of $11.82 during earlier market optimism. Technical analysis showed that the altcoin has remained in a sustained downtrend for months, with price action consistently capped by a descending resistance trendline. Momentum indicators reinforce the bearish outlook. The Moving Average Convergence Divergence (MACD) has formed a death cross, a signal often associated with extended downside pressure. Meanwhile, the Accumulation/Distribution indicator suggests continued distribution, with approximately 1.2 billion WLD entering the market. Final Summary Sam Altman’s Worldcoin faces allegations of insider activity and misuse of users’ biometric data. WLD token hits an all-time low, with indicators pointing to the risk of further decline.