On-chain investigator ZachXBT has levied serious allegations against Sam Altman-linked Worldcoin, now rebranded as World, accusing it of operating a predatory token model while collecting biometric data from vulnerable users. The claims surfaced amid heightened attention following Elon Musk's reference to OpenAI CEO Sam Altman as 'Scam Altman' on X.
ZachXBT described Worldcoin's WLD token as a 'predatory low float crypto token' and compared its practices to tactics employed by Sam Bankman-Fried and FTX. He alleged that the project launched with a low circulating supply of WLD tokens, artificially inflated the token supply at an unsustainable rate, and that insiders regularly sold their holdings through over-the-counter transactions. According to screenshots shared by ZachXBT, the World Foundation allegedly sold 85.45 million WLD for $25 million through FalconX at an average price of $0.293.
Worldcoin, a human verification project using iris-scanning Orbs, offers WLD tokens to users after verification. Critics have long questioned its operations in low-income regions. ZachXBT claimed the project exploited vulnerable users by offering small token rewards in exchange for biometric data, and that this system created a black market for verified accounts. Verified accounts were allegedly sold for as low as $0.50 on escrow platforms, undermining the project's privacy and security claims.
The allegations come as Elon Musk's lawsuit against OpenAI and Altman heads to trial. Jury selection was completed on Monday in a California federal court. Musk is seeking damages from OpenAI and Microsoft, citing a departure from the company's nonprofit mission. Prediction markets placed Musk's odds of winning at about 60% on both Kalshi and Polymarket.
WLD price fell more than 2% following the allegations, trading near $0.25 with a 24-hour range of $0.25 to $0.26. Derivatives data showed mixed activity: WLD futures open interest rose over 7% to $177.51 million, while short-term open interest on Binance, OKX, and Bybit declined. Worldcoin has faced ongoing debate over privacy, token distribution, and global user onboarding, and the latest allegations add pressure as the project continues to expand its identity network.
