Sam Altman's Crypto Project Worldcoin In Hot Water After ZachXBT Flags 'Black Market' Activity – WLD Coin Price Dips

• Crypto investigator ZachXBT said that the Sam Altman-supported World used a "predatory" token framework.
• He flagged risks, including a black market for verified accounts and alleged ongoing insider selling alongside rising token supply.
• The scrutiny comes as OpenAI faces internal concerns after reportedly missing revenue and user targets, raising questions about its heavy data center spending.

Worldcoin (WLD), co-founded by OpenAI (OPENAI) CEO Sam Altman edged lower on Tuesday, after crypto investigator ZachXBT raised concerns alleging it posed significant risks of exploitation for users.

ZachXBT claimed on X that World, formerly known as Worldcoin, launched its WLD token with a “predatory low float” structure on par with SBF/ FTX companies.

He alleged that the project has “preyed on people from low-income countries” by offering small amounts of tokens in exchange for biometric data. He also pointed to the emergence of a “black market for verified accounts,” suggesting that the system designed to establish digital identity has led to misuse.

ZachXBT further alleged that token supply dynamics remain unsustainable, claiming that insiders have continued to offload holdings through over-the-counter transactions while supply expands.

What Is Worldcoin?

Worldcoin, launched in 2023 and co-founded by OpenAI (OPENAI) CEO Sam Altman, is designed to build a global digital identity network known as “World ID.” The project uses a biometric device called an “Orb” to scan users’ irises and verify proof of personhood, distributing its native WLD token as part of the onboarding process. 

WLD’s price was trading at $0.24, down roughly 1.5% over the past 24 hours amid weakness in the broader cryptocurrency market. On Stocktwits, the retail sentiment around WLD remained in the ‘extremely bullish’ zone, while chatter around it remained in ‘extremely low’ levels over the past day.

Bitcoin’s price was trading $75,684, down over 3% in the last 24 hours. On Stocktwits, retail sentiment around the apex cryptocurrency remained in the ‘bullish’ zone, while chatter stayed at ‘normal’ levels over the past day.

Retail sentiment around OpenAI, which is not publicly listed, was in an ‘extremely bullish’ zone, while chatter was at ‘extremely high’ levels over the past day.

Musk-OpenAI Feud Intensifies As Lawsuit Escalates

The criticism comes as tensions escalate between Elon Musk and OpenAI. On Monday, the OpenAI newsroom said on X that it looks forward to defending itself in court, calling Musk's lawsuit a “baseless” attempt to derail a competitor. 

Musk, who co-founded OpenAI in 2015 as a nonprofit focused on developing safe artificial general intelligence, had alleged that the company violated its original mission by shifting to a for-profit model backed by Microsoft (MSFT). He is seeking more than $100 billion in damages and structural changes. 

Musk has repeatedly targeted Altman, referring to him as “Scam Altman,” and has been vocal about the lawsuit, saying, “Scam Altman and Greg Stockman stole a charity.” 

The scrutiny comes at a time when OpenAI is also facing internal and financial pressure. According to a Wall Street Journal report, the company recently missed key revenue and user growth targets, raising concerns among executives about whether it could sustain its heavy spending on data center infrastructure.

The report added that Chief Financial Officer Sarah Friar warned internally that the company may struggle to meet future computing-related financial commitments if growth does not accelerate.

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