World Token Project Rocked by Fraud Allegations
Prominent on-chain investigator ZachXBT has recently drawn stark comparisons between the launch of World's WLD token and the infamous FTX debacle. He highlighted the token's predatory issuance model, characterized by an artificially restricted circulating supply that disadvantages ordinary investors.
The Scheme: Trading Tokens for Biometric Data
The project allegedly targeted individuals in low-income regions, offering small amounts of WLD tokens in exchange for their biometric data. This information, intended for human verification purposes, was misused, inadvertently fostering a black market for pre-verified accounts.
- Target: Residents in economically disadvantaged areas
- Method：Exchanging free tokens for personal biometrics
- Illicit Outcome: A underground market for verified accounts
Unsustainable Economics and Insider Profiteering
Compounding the issue is the token's supply, which is inflating at a rate unsustainable for the project's ecosystem. Furthermore, project insiders are not sharing the risk with the community. Instead, they are regularly offloading their holdings through over-the-counter (OTC) sales, cashing out early and transferring risk to later investors.
These practices reveal critical flaws in the token's design, data protection measures, and internal governance, sparking widespread condemnation within the crypto community and calls for regulatory scrutiny.