Prominent on-chain analyst ZachXBT has publicly criticized Worldcoin (WLD) tokenomics and insider sales, drawing comparisons to controversial practices linked to Sam Bankman-Fried (SBF) and FTX. The critique centers on the low circulating supply of WLD at launch and the rapid, unsustainable increase in token supply since then. In a detailed thread on X, he argued that the low circulating supply artificially inflated the initial price, benefiting early investors and insiders at the expense of retail participants.
According to ZachXBT, insiders have been regularly selling holdings through over-the-counter (OTC) deals, bypassing public exchanges. This cumulative effect contributes to a growing supply that outpaces demand, putting downward pressure on WLD's price. He also criticized Worldcoin's biometric data collection in low-income countries, suggesting it exploits vulnerable populations and has created a black market for authenticated accounts.
On-chain data shows that WLD's circulating supply has grown by over 200% since launch, far exceeding growth rates of major tokens like Ethereum (67%) and Solana (12%). This rapid inflation raises concerns about long-term viability. ZachXBT identified multiple wallets linked to Worldcoin insiders that regularly transferred large amounts of WLD to OTC desks, often before major price movements, which could constitute insider trading.
The crypto community reacted strongly, with WLD price declining by 30% since the thread was published. Tokenomics experts note that low circulating supply at launch is common but must be paired with a clear distribution plan to avoid long-term inflation. Without a burn mechanism or utility driving token consumption, the price may continue to fall.
