Controversy Sparks WorldCoin Founder’s Refusal To Answer Token Distribution Question

WorldCoin co-founder Alex Blania’s recent refusal to disclose the token’s distribution model has raised eyebrows from some, including John Deaton, who expressed his dismay at his move.

Something wrong with WorldCoin?

A Video It surfaced on Twitter that during a recent Bankless interview with fellow co-founder Sam Altman, Alex Blania refused to answer the host’s question on WorldCoin’s token distribution, citing regulatory uncertainty in the US as the reason why he could not answer the question.

Twitter user (@Pledditor) posted the video with caption,

“When a crypto founder refuses to answer questions about token distribution🚩🚩🚩”

In the video, the host asks Blania to explain the distribution of WLD tokens, and Blania is quoted as saying: “Look, we can’t talk about many of the details 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, in fact, Alex Blania was being honest about why he could not answer the question.

However, John Deaton, a well-known crypto attorney who represents some XRP holders, was quick to react to the video in a tweet.

Deaton’s do Reading:

What did this man say? Did he really say he can’t talk about how WorldCoin is distributed in the United States “due to regulatory uncertainty”?

If ever there was a signal to run away from a project as quickly as possible, here it is. Is he saying he can’t tell you how to achieve this or what you’re getting because he might get sued?

Now that I think about it, is he being smart and just following legal advice or is he being an idiot.

Deaton said Blania’s actions were reason enough for investors to shy away from the project. However, the SEC and its chairman Gary Gensler were not spared from Deaton’s wrath as he also criticized them for their role in creating a state of turmoil regarding the regulatory environment in the crypto sector.

“But this is just one example of the chaos that ensues when you lose faith in regulators like you @GaryGensler intentionally kept the regulatory environment unknown,” Deaton said.

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 such as Binance, Get.io and KuCoin were quick to list it at launch.

WLD price recovers above $2.2 | Source: WLDUSD on Tradingview.com

Founded by Altman, the CEO of OpenAI, WorldCoin aims to solve the problem of differentiating between human- and bot-related projects. This problem has arisen from the increasing use of artificial intelligence in almost all areas of life. The team plans to solve this by giving humans unique digital identities to distinguish them from artificial intelligence algorithms.

The WLD token rose to $3.30 after the launch. However, the coin’s price seems to have reacted negatively to the issue of its token distribution and other privacy concerns, as it fell to as low as $1.66 on Monday, as the data shows. coingeco, At the time of writing WLD is currently trading at around $2.12, having decreased by 16% in the last 24 hours.

Featured image from Altcoin Buzz, chart from Tradingview.com