Worldcoin (WLD) has experienced a drastic decline of approximately 18% in the last 24 hours, falling from $6.23 to $4.64, following harsh accusations from DeFi analyst DefiSquared. The WLD coin is currently trading at $4.85. This sudden drop has triggered the liquidation of $4 million in long positions among derivative investors, with DefiSquared's accusations being seen as a primary factor in the crisis.

The accusations claim that WLD loses 0.6% of its value daily due to quickly sold grant emissions and operator demands, based on on-chain analytics. Additionally, the analyst suggests that with the release of team and VC locks within 70 days, WLD supply will increase by 4% daily. The Worldcoin Foundation's announcement to sell $200 million worth of tokens allocated for community distributions has also come under fire, with DefiSquared describing it as a "manipulative low float/high FDV design" that directly enriches insiders.

Another point of contention is the claim that Worldcoin has no connection with OpenAI and that Sam Altman is not actively involved in the project, despite a Bloomberg report in April suggesting a partnership between the two companies. Leading crypto analyst ZachXBT has described DefiSquared's accusations as fraud, but the Worldcoin team has yet to respond to these allegations.

The DeFi community is closely watching the situation, and the future of Worldcoin remains uncertain. The team's response to these claims will be crucial in determining the project's future. Everyone is waiting for an official statement from the Worldcoin team to address these accusations and provide clarity on the project's direction.