The pseudonymous on-chain sleuth known as ZachXBT is criticizing Sam Altman’s Worldcoin (WLD) for alleged biometric data-scam practices, drawing parallels to the collapse of the FTX exchange.
Shots were fired in a reply to a tweet posted by Elon Musk, whose lawsuit against Altman’s OpenAI is now heading to trial.
Responding to Musk’s post branding Altman “Scam Altman,” ZachXBT raised concerns about the WLD token, which he called “predatory” and “low float,” arguing that it echoes some of the most fraudulent crypto initiatives.
“No one seems to mention Scam Altman’s other company WorldCoin aka World which launched with a predatory low float crypto token WLD that was on par with SBF / FTX companies. They have preyed on people from low income countries for biometric data by giving away small amounts of WLD tokens,” ZachXBT wrote.
Worldcoin token’s biometric model has resulted in a black market, ZachXBT says
At the core of the criticism is the project’s biometric model, which ZachXBT alleges has led to some questionable practices in lower-income regions.
Specifically, the crypto detective claims that small token payouts were used to collect sensitive biometric data, raising ethical and privacy concerns.
“The tech was intended a way to prove you’re a human except it has resulted in a black market for verified accounts. The token supply inflates at unsustainable levels while insiders regularly OTC holdings,” the post went on.
This has led to what the post described as a growing “black market for verified accounts,” which are sold cheaply on platforms such as Telegram. Replying to some of the comments on his post, ZachXBT also noted that, at launch, Worlcoin geo-blocked the tokenomics for Virtual Private Network (VPN) IPs to prevent people from reading the vesting details.
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