Worldcoin has firmly denied recent accusations of allowing insiders to profit from token movements, emphasizing its “zero tolerance” policy for such activities.
On July 17, DeFi Squared, a decentralized finance insights account, published a post alleging that Worldcoin engaged in price manipulation of its Worldcoin token.
The account suggested that someone within the team might have used insider information to buy the token before the project announced a delay in its native token unlock schedule.
Alongside DeFi Squared, pseudonymous crypto investigator ZachXBT also accused Worldcoin of allowing insiders to profit from what he termed a “scam token.”
He alleged that team members and venture capitalists were involved in what he described as “the biggest scam token of the bull run.”
Worldcoin has categorically denied these allegations. A spokesperson from Worldcoin stated:
“The Worldcoin Foundation and contributor Tools for Humanity take any allegation of insider trading, even if unfounded and unsubstantiated, seriously and would have zero tolerance for such activity if it were to occur.”
The spokesperson further clarified that the organizations have not found any evidence supporting claims of insider trading or price manipulation.
READ MORE: Mt. Gox Begins Test Transactions for Creditor Repayments via Bitstamp
They maintain a strict market integrity policy to prevent such activities.
The representative also stated that individuals covered by their policies are “at all times prohibited from disclosing confidential information relevant to WLD purchasing decisions.”
During the critical periods in question, these individuals were reportedly under an active blackout, preventing them from trading WLD tokens.
The allegations surfaced amidst Worldcoin’s decision to delay the unlocking of 80% of its WLD supply by two years.
On July 16, Tools for Humanity published a blog post announcing the extension of the unlock period for tokens held by team members and investors.
Following this announcement, WLD prices surged by 68% over two days, making it one of CoinGecko’s top gainers at the time. Currently, the token is valued at $2.36.
Worldcoin remains committed to addressing these allegations and ensuring the integrity of its market practices.
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
