Worldcoin has firmly denied recent allegations of insider trading and price manipulation. The decentralized finance (DeFi) insights account DeFi Squared claimed that Worldcoin engaged in price manipulation of its Worldcoin (WLD) token.
The account suggested that someone from the Worldcoin team used insider information to buy the token before announcing a delay in the native token unlock schedule.
Additionally, pseudonymous crypto investigator ZachXBT accused Worldcoin of allowing insiders to profit from what he termed a “scam token.” According to ZachXBT, team members and venture capitalists were involved in what he described as “the biggest scam token of the bull run.” Worldcoin has responded by stating it has zero tolerance for such activities.
Worldcoin’s Firm Stance on Market Integrity
A spokesperson for Worldcoin emphasized that the organization takes any allegations of insider trading seriously. The spokesperson stated that the Worldcoin Foundation and Tools for Humanity are committed to maintaining strict market integrity and that no evidence supports the claims of insider trading or price manipulation.
The spokesperson also emphasized that Worldcoin’s strict policies prohibit individuals from disclosing confidential information related to WLD purchasing decisions, thereby preventing insider trading activities. Furthermore, during the relevant periods, they were under an active blackout, preventing them from trading WLD tokens.
Impact of Unlock Delay on Token Prices
The allegations against Worldcoin surfaced following the company’s decision to delay unlocking 80% of its WLD supply by two years. On July 16, Tools for Humanity extended the unlock period for tokens held by team members and investors through a blog post. This delay led to a price surge, with WLD prices rising by 68% in two days, making it one of the top gainers at the time.
The Worldcoin’s representative stressed that the organization is committed to maintaining the market transparency and avoiding any market manipulation. They assured stakeholders that Worldcoin remains committed to transparency and ethical practices.
Despite the allegations, Worldcoin’s token has experienced significant price growth following the unlock delay announcement, reflecting strong market confidence.
Also Read: Worldcoin Token Unlock Extended to 5 Years Amid 30% Surge
