Prominent on-chain investigator ZachXBT slams Sam Altman’s Worldcoin (now World) and compares its practices with Sam Bankman-Fried’s FTX scam. This comes as Elon Musk’s lawsuit against OpenAI goes to trial.
Sam Altman’s Worldcoin (WLD) Faces Scam Allegations
Paradigm’s ZachXBT replied to Elon Musk’s X post labeling OpenAI CEO Sam Altman as “Scam Altman,” criticizing Altman for his alleged deceptive practices. ZachXBT spotlights long-standing concerns about Worldcoin (now World) and its WLD token.
ZachXBT claims WLD as “predatory low float crypto token.” He also compared the practice and token to the scam tactics of Sam Bankman-Fried and the FTX companies.
Paradigm advisor alleges that Sam Altman and Worldcoin are operating a predatory token model that exploits vulnerable populations for biometric data. He noted that they are giving away small amounts of WLD tokens to collect biometric data from people in low-income countries.
Notably, the technology was intended for a human verification project via iris-scanning Orbs. However, “it has resulted in a black market for verified accounts,” added ZachXBT.
ZachXBT shared a screenshot that shows accounts are being sold for as low as $0.50 each on escrow platforms. This undermines the project’s privacy and security claims, turning biometric data collection into a trade.
Furthermore, he also warned about massive WLD token sales by the Worldcoin Foundation. One image showed that the World Foundation sold 85.45 million WLD for $25 million via FalconX at an average price of $0.293.
He also alleged that Sam Altman and Worldcoin inflated WLD token supply and insider dumping. ZachXBT cited an MIT Technology Review article that criticized Worldcoin’s early recruitment tactics, describing “deception, exploited workers, and cash handouts” to build a biometric database of low-income individuals.
Elon Musk’s OpenAI Lawsuit Goes to Trial
The Worldcoin allegations emerge as Elon Musk’s high-profile lawsuit against Sam Altman and OpenAI heads to trial. Musk accuses Sam Altman of deviating from OpenAI’s nonprofit agenda for commercial gain.
Jury selection was completed on Monday in a California federal court for a high-stakes trial over the future of OpenAI, Reuters reported on Tuesday. Musk is seeking $150 billion in damages from OpenAI and Microsoft, according to a person involved in the lawsuit.
Elon Musk will try to convince the nine-person jury that Sam Altman and Brockman misled him into investing in OpenAI. Meanwhile, top prediction markets are split, with Kalshi putting Musk’s odds of winning at about 60%. Polymarket also shows 60% odds of Elon Musk winning the OpenAI lawsuit.
Elon Musk’s Winning Odds in OpenAI Lawsuit. Source: KalshiWLD Price Dips amid Sam Altman’s Worldcoin Scam Allegations
WLD price fell more than 2%, with the price currently trading at $0.2519. The 24-hour low and high are $0.2477 and $0.2579, respectively. Furthermore, trading volume has increased by almost 7% in the last 24 hours.
CoinGlass data showed mixed sentiment in the derivatives market. At the time of writing, the total WLD futures open interest jumped 1% in the last hour, with a 7.66% rise to $177.51 million in the last 24 hours.
The 4-hour WLD futures open interest on Binance, OKX, and Bybit fell 0.60%, 1.44%, and 2.61%, respectively. This signals profit booking by derivatives traders amid ZachXBT’s scam allegations against Sam Altman’s Worldcoin.
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Source: https://coingape.com/paradigm-zachxbt-alleges-sam-altman-worldcoin-wld-of-scam-elon-musk-openai-lawsuit/
