Pseudonymous on-chain sleuth ZachXBT has criticized Sam Altman’s Worldcoin, alleging the project used a predatory WLD token model tied to biometric data collection in low-income countries. The claims came in response to Elon Musk’s post calling Altman “Scam Altman,” as Musk’s lawsuit against OpenAI moves toward trial.
ZachXBT said Worldcoin, now known as World, launched WLD as a “predatory” low-float crypto token. He compared the structure to some of the most fraudulent crypto ventures. He wrote that the project gave small amounts of WLD tokens to people in low-income countries in exchange for biometric data. The comment raised fresh attention around Worldcoin’s identity verification model.
The criticism came after Musk posted about Altman amid their legal dispute. ZachXBT then shifted the focus to Altman’s other company and its crypto-linked biometric system.
ZachXBT said Worldcoin’s technology aimed to prove that users were human. Yet, he claimed the model created a black market for verified accounts. According to his post, verified accounts now sell cheaply on platforms such as Telegram. That claim added another layer to concerns about the project’s biometric approach.
He also alleged that WLD supply inflates at unsustainable levels. At the same time, he claimed insiders regularly sell holdings through over-the-counter deals.
In replies to users, ZachXBT added that Worldcoin geo-blocked tokenomics access for VPN IPs at launch. He said this blocked some users from reading vesting details.
The Worldcoin allegations surfaced as Musk’s lawsuit against Altman and OpenAI heads to trial. Musk accuses Altman of moving OpenAI away from its nonprofit mission for commercial gain. Reuters reported Tuesday that jury selection finished Monday in a California federal court. The trial centers on OpenAI’s future and Musk’s claims against Altman and Brockman.
Musk seeks $150 billion in damages from OpenAI and Microsoft, according to a person involved in the lawsuit. He will try to convince a nine-person jury that Altman and Brockman misled him into investing.
Prediction markets also tracked the case. Kalshi showed Musk’s odds of winning at about 60%, while Polymarket also placed his odds near 60%.
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WLD fell more than 2% after the allegations, with the token trading at $0.2519. Its 24-hour low stood at $0.2477, while the high reached $0.2579. Trading volume rose by almost 7% over the same period. That increase showed stronger market activity as the dispute gained attention.
CoinGlass data showed mixed derivatives sentiment. Total WLD futures open interest rose 1% in one hour and climbed 7.66% over 24 hours to $177.51 million. Still, shorter-term exchange data showed some pressure. Four-hour WLD futures open interest fell 0.60% on Binance, 1.44% on OKX, and 2.61% on Bybit.
ZachXBT’s Worldcoin allegations have renewed scrutiny over WLD’s token structure, biometric data practices, and reported black market activity. The claims also arrive as Elon Musk’s OpenAI lawsuit against Sam Altman moves toward trial, keeping Worldcoin, WLD price action, and investor sentiment under scrutiny.