CryptoQuant Founder Calls Worldcoin Scam and Illegal, Cites Zero Utility and Unclear Tokenomics

CryptoQuant founder has dropped a hot take on Sam Altman’s Worldcoin (WLD), dubbing it a scam and illegal project with no use case.

Worldcoin is the latest project to take the crypto market by storm. Launched on July 24, many crypto exchanges have already supported the WLD token.

Regardless, several industry professionals and the broader crypto community continue to criticize the project. Cryptoquant founder and CEO Ki Young Ju is among the latest key players lambasting Worldcoin.

Cryptoquant Founder Blasts Worldcoin

In a recent disclosure, Ju called the Worldcoin project a scam. The expert noted that the project’s Universal Basic Income concept is meaningless if OpenAI isn’t tokenized.

Worldcoin: I’ll scan everyone’s iris in the world only except for ppl in USA because they know this is illegal! pic.twitter.com/ntf90V5Zxw

— Ki Young Ju (@ki_young_ju) July 24, 2023

Per a Twitter thread, the founder of the popular analytic platform submitted that WLD’s tokenomics is unclear. To further highlight this flaw, he remarked: “Changing tokenomics post-launch is nearly impossible.”

According to him, Worldcoin’s incentivization strategy to attract more users to its AI-based platform is flawed and unsustainable. “If the token is just for incentives to attract more users and zero utility (unclear tokenomics), it’s a scam,” he wrote. Ju also mocked Sam Altman for launching WLD to replace Bitcoin.

Expert Explains Why WLD is Illegal

Developed by OpenAI founders, Worldcoin is a project that distinguishes humans from AI online. To achieve this, the team incorporated a mechanism dubbed ‘Orb.’ The Orb scans users’ iris to verify whether or not someone is a human.

Upon successful verification, users are assigned a digital identity (or World ID). Also, users are issued the WLD token as an incentive. However, citizens of the United States are prohibited from interacting with the Worldcoin platform or owning the WLD token. 

Reacting to this reality, the CryptoQuant founder submitted that the project is illegal. He implied that Worldcoin seeks to use individuals from other countries as scapegoats.

Notably, shortly after Ki Young Ju’s comments on the project, attorney John Deaton criticized Worldcoin’s founder Alex Blania for failing to reveal the token’s distribution model.

Amid these mounting criticisms, WLD has been listed on many top exchanges, including Binance, Kucoin, and Gate.io. The token is trading for $2.02 as of press time, down 38.52% over the last 24 hours.