Worldcoin token unlocks extended from 3 to over 5 years.
WLD price surged 68% in two days after unlocking schedule change.
Allegations of insider trading and price manipulation emerge.
Worldcoin has recently faced allegations of insider trading and price manipulation. These claims surfaced after the project’s managing entity, Tools for Humanity (TFH), announced a significant alteration to its token unlock schedule.
TFH declared that the unlock period for 80% of Worldcoin (WLD) tokens, initially planned over three years, would extend to more than five years, starting July 24. This adjustment means that the tokens will now gradually enter the market by July 2028, rather than the earlier timeline.
Consequently, this extension is expected to limit the number of tokens in circulation, potentially averting a sharp decline in their value.
Price Surge and Scrutiny
Following the announcement, the value of WLD tokens witnessed a remarkable surge, escalating by 68% within just two days. On July 15, the price stood at $1.90, which climbed to $2.81 by July 16, and peaked at $3.20 on July 17 before settling at $3.11. This significant price movement drew attention and scrutiny from the cryptocurrency community.
Cryptocurrency investigator ZachXBT labeled the event as possibly the “biggest scam token of the bull run.” Moreover, a detailed post by DeFi Squared on X raised suspicions about potential price manipulation tactics employed by the Worldcoin team, including strategic emissions adjustments and timing announcements to coincide with token unlocks.
https://t.co/cZE3Uj8gRm
— DeFi^2 (@DefiSquared) July 17, 2024
Community Reaction
These allegations have stirred a mix of reactions across the crypto community, with discussions centering on the ethical implications of such moves by token issuers.
The unfolding situation remains a pivotal moment for Worldcoin as it navigates the complexities of market trust and regulatory scrutiny. How the project manages these challenges could set a precedent for other entities in the rapidly evolving cryptocurrency sector.
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The post Worldcoin Accused of Insider Trading Amid Extended Token Schedule appeared first on Crypto News Land.
