The Sam Altman-backed Worldcoin (WLD) has seen impressive gains following its May 1st U.S. launch, but significant concerns remain about its long-term viability.

Worldcoin, designed to provide tamper-proof digital identity verification as an answer to AI challenges, has experienced a notable price surge in recent days. The token jumped from $1.03 to $1.16 before settling at $1.08 by the end of May 1st, representing a 4.31% daily gain and an impressive 19.78% increase over the past week.

Worldcoin Price Chart (TradingView)

However, potential investors should exercise caution. Despite the positive price action, Worldcoin continues to face substantial hurdles that could dampen its bullish momentum.

The project remains mired in controversy and legal complications. Additionally, token concentration remains problematic. While improved from August 2023 when just 10 wallets controlled 98% of WLD’s total supply, the situation is still far from ideal. According to data from CoinCarp, the top 10 holders still command 77.62% of the token’s total supply as of May 1st.

Notably, none of these top 10 wallets belong to exchanges. Binance’s wallet, the largest exchange-owned address, ranks only 15th and holds a mere 0.58% of the total supply.

Further raising red flags, cryptocurrency investigator ZachXBT previously expressed serious concerns about the project team’s token manipulation tactics, even labeling it the “biggest scam token of the bull run” in July.

While Worldcoin’s price movement following the U.S. launch has certainly caught investors’ attention, these persistent issues suggest that caution may be warranted before jumping into this particular digital asset.