Worldcoin Claims Surface As Musk Lawsuit Nears Trial

Worldcoin’s WLD token fell over 2% to around $0.25 following renewed scrutiny tied to fraud allegations. The decline coincides with escalating legal tensions between Elon Musk and OpenAI leadership, drawing attention to broader governance and token design concerns.

Blockchain investigator ZachXBT publicly criticized Worldcoin’s structure, describing it as a “predatory low float crypto token.” He raised concerns about token distribution, alleged insider sales, and the project’s reliance on biometric data collection through iris-scanning devices.

Do Biometric Tokens Create Structural Market Risks?

Worldcoin distributes WLD tokens to users who verify identity via Orb devices, often in emerging markets. Critics argue that offering small financial incentives for biometric data may introduce ethical risks, particularly when combined with secondary markets for verified accounts.

Screenshots shared by ZachXBT suggest verified accounts have been resold for as little as $0.50 on escrow platforms. He also pointed to an alleged sale of 85.45 million WLD tokens for $25 million via FalconX, implying an average price of $0.293 and raising questions around supply dynamics.

The scrutiny follows earlier reporting from MIT Technology Review, which examined Worldcoin’s recruitment tactics and use of cash incentives. These concerns have persisted as the project expands its global identity network and token distribution model.

Still, the timing aligns with Musk’s lawsuit against OpenAI and CEO Sam Altman entering trial in a California federal court. Prediction markets such as Kalshi and Polymarket assign roughly 60% odds to Musk prevailing, reflecting uncertainty around the case’s outcome.

Derivatives data shows mixed positioning, with WLD futures open interest rising over 7% to $177.51 million, according to CoinGlass. The next catalyst will likely emerge from court developments or further disclosures around token sales and user acquisition practices.