Worldcoin co-founder Alex Blania’s recent refusal to disclose the token’s distribution model has drawn the attention of some, including John Deaton, who has expressed dismay at his action.
Something fishy with Worldcoin?
TO video appeared on Twitter in which Alex Blania, during a recent Bankless interview along with co-founder Sam Altman, refused to answer the host’s question about Worldcoin token distribution, citing regulatory uncertainty in the US as the reason he couldn’t answer the question.
Twitter user (@Pledditor) posted the video with the caption:
“When a crypto founder refuses to answer questions about token distribution????????????”
In the video, the host asks Blania to explain the distribution of the WLD token and Blania is quoted as saying: “Look, a lot of the details we can’t talk about here because of regulatory uncertainty in the United States.”
The video quickly went viral and sparked controversy as to whether Worldcoin was just another ‘ponzinomics’ or indeed Alex Blania was honest about why he couldn’t answer the question.
However, renowned crypto lawyer John Deaton, who represents some XRP holders, was quick to react to the video in a tweet.
of deaton cheep read:
What did this guy just say? Did you literally say you can’t talk about how WorldCoin is distributed “due to regulatory uncertainty” in the US? ????♂️
If ever there was a signal to GET OUT of a project as quickly as possible, HERE IT IS. Are you saying that you can’t tell him how to get it or what you’re getting because you could be sued? ????♂️
Come to think of it, is he being smart and just following legal advice or is he a jerk? ????♂️
Deaton claimed that Blania’s action was reason enough for investors to flee the project. The SEC and its chairman, Gary Gensler, were not spared Deaton’s wrath, however, as he too criticized them for their role in creating a state of confusion regarding the regulatory environment in the crypto space.
“But this is an example of the chaos that results when you have bad faith regulators like @GaryGensler intentionally keeps the regulatory environment unknowable,” Deaton said.
A bad start for WLD?
This development comes less than 48 hours after the launch of Worldcoin’s highly anticipated WLD token. However, there were some positives for the token, as major crypto exchanges like Binance, Gate.io, and KuCoin were quick to list it upon launch.
WLD price recovers above $2.2 | Source: WLDUSD on Tradingview.com
Founded by OpenAI CEO Altman, Worldcoin aims to solve the problem of differentiating between humans and bot-related projects. This problem has stemmed from the increasing use of artificial intelligence in almost all spheres of life. The team plans to solve this by giving humans unique digital identities to differentiate them from artificial intelligence algorithms.
The WLD token shot up to $3.30 upon launch. However, it appears that the token price has reacted negatively to the issue of its token distribution and other privacy concerns, as it dipped as low as $1.66 on Monday, according to data from CoinGeko. WLD is currently trading at around $2.12 at the time of writing, down 16% in the last 24 hours.
Featured Image from Altcoin Buzz, Chart from Tradingview.com
