XRP Pro Lawyer and On-Chain Analytics CEO Pin WorldCoin as Red Flag Investment

• Worldcoin co-founder Alex Blania’s refusal to disclose the token’s distribution model has raised concerns among potential investors.
• Renowned crypto lawyer John Deaton suggests that Blania’s evasiveness should be a red flag for potential investors.
• Despite the controversy, Worldcoin’s WLD token has been listed on top exchanges, but its price has seen a significant drop.

The Worldcoin project, a brainchild of OpenAI’s Sam Altman and Alex Blania, has been thrust into the limelight following Blania’s reluctance to shed light on the token’s distribution model during a Bankless interview. This reticence, attributed to regulatory ambiguity in the U.S., has sparked concern among the crypto community, including prominent lawyer John Deaton.

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Deaton, who is known for representing a group of XRP holders, was quick to respond to the interview clip, cautioning potential investors about Blania’s evasive responses. He also took a swipe at the SEC and its Chair Gary Gensler for their role in fostering the prevailing regulatory uncertainty in the crypto space.

Furthermore, Worldcoin has been on the receiving end of a barrage of criticism from industry insiders and the broader crypto community since its launch on July 24. The project has been labeled a scam and an illegal operation by Ki Young Ju, the founder and CEO of CryptoQuant. Yet, in the face of this controversy, Worldcoin’s WLD token has found support from numerous crypto exchanges.

Worldcoin’s mission is to distinguish humans from AI on the internet. It employs an ‘Orb’ mechanism that scans users’ irises to authenticate their human identity. Once verified, users are granted a digital identity and rewarded with the WLD token. However, U.S. citizens are barred from engaging with the Worldcoin platform or possessing the WLD token.

Ju took issue with Worldcoin’s opaque tokenomics and its unsustainable incentive strategy. He also ridiculed Altman’s ambition to launch WLD as a Bitcoin replacement. Deaton echoed Ju’s sentiments, criticizing Blania for his failure to disclose the token’s distribution model.

Despite the backlash, Worldcoin’s WLD token has secured listings on leading exchanges such as Binance, Kucoin, and Gate.io. However, the token’s price has suffered a significant slump, currently trading at $2.19, marking a 0.7% increase over the past 24 hours.

Read also:

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