Worldcoin Responds to Insider Trading and Price Manipulation Allegations

Worldcoin Denies Insider Trading Claims

Worldcoin has firmly denied allegations of insider trading and price manipulation concerning its native token, WLD. The project, which focuses on human identity verification, has addressed the accusations and stressed its commitment to market integrity.

Allegations and Response

On July 17, DeFi Squared, a decentralized finance insights account, and pseudonymous crypto investigator ZachXBT accused Worldcoin of price manipulation and insider trading. The allegations suggest that insiders might have used confidential information to benefit from a delay in the token's unlock schedule.

In response, a Worldcoin spokesperson reiterated the project's stance on maintaining a fair and transparent market. They 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.”

Worldcoin's spokesperson also highlighted that there is no evidence supporting the claims of insider trading or price manipulation. They emphasized that the organization upholds strict market integrity policies to prevent such activities. Additionally, during the period in question, the team was in a blackout period, prohibiting any trading activities related to WLD.

Token Unlock Delay

The allegations come in the wake of Worldcoin's decision to delay the unlocking of 80% of its token supply by two years. This announcement was made on July 16 by Tools for Humanity, which manages Worldcoin’s operations. The delay led to a significant increase in WLD’s price, which soared by 68% in two days, making it one of the top gainers on CoinGecko. As of the latest update, WLD is trading at $2.36.

Worldcoin’s 1-month price chart. Source: CoinGecko

Worldcoin's response underscores its zero-tolerance policy towards insider trading and its commitment to market integrity. The project is currently focused on addressing the allegations and maintaining transparency as it navigates the challenges surrounding its token and operational decisions.