Worldcoin denies allegations of insider trading and price manipulation
Human Identity Project WorldCoin has denied recent allegations that it has allowed insiders to profit from the token's activity and has emphasized that it has “zero tolerance” for such activities.
In the year On July 17, decentralized finance (DeFi) Insights account DeFi Squad published an X post claiming that the Worldcoin project was engaged in manipulating the value of the Worldcoin (WLD) token. Additionally, the account claims that someone from the group may have “used inside information” to purchase the token before the project announced a delay to its native token launch schedule.
In addition to the DeFi squad, crypto-investigator ZackXBT also spoke out, accusing WorldCoin of allowing insiders to float a “fraudulent token.” A group of blockchain analysts and venture capitalists are complicit in what ZackXBT describes as “the biggest scam of the bull run.”
Worldcoin has denied allegations of allowing insider trading
A spokesperson for Worldcoin denied the allegations. According to WorldCoin, it is taking these allegations seriously and does not allow such activities. A spokesperson told Cointelegraph:
“The WorldCoin Foundation and its contributors will take any accusation of insider trading, even if unfounded and unsubstantiated, with zero tolerance for such activity, even if it occurs.
The spokesperson added that the two organizations did not find any evidence to prove the allegations of insider trading and price manipulation. A Worldcoin representative says they maintain a strict market integrity policy that works to prevent these activities.
A Worldcoin representative also said that people covered by their policies are “prohibited from disclosing confidential information related to WLD's purchase decisions at any time.” The spokesman added that during the said periods they were in a dark period which prevented them from participating in any WLD business activities.
Related: Binance calls on small and medium-sized projects to fight low-float, high-FDV trend
Worldcoin delays token launch by two years
The recent accusation against Worldcoin comes in the wake of its decision to unlock 80% of its WLD supply in two years. On July 16, Tools for Humanity published a blog post extending the opening period for tokens held by team members and investors.
Following the announcement of the opening delay, WLD prices surged 68% in two days, making it one of CoinGecko's top earners at the time. Currently, the token is set at $2.36.
Magazine: Pudgy Penguins Land on Pixelverse, Ether ETFs and More: Hodler's Digest
