Worldcoin, a human identity project, has refuted recent allegations of insider trading and price manipulation involving its token, WLD. A spokesperson emphasized the organization’s “zero tolerance” policy for such activities, underscoring the seriousness with which they approach these claims.
Allegations and Accusations
On July 17, the decentralized finance (DeFi) insights account DeFi Squared accused Worldcoin of price manipulation in an X post. The account suggested that someone within the project may have used insider information to buy the token ahead of an announcement delaying its native token unlock schedule.
In addition, pseudonymous crypto investigator ZachXBT alleged that Worldcoin facilitated insider trading, allowing team members and venture capitalists to profit from what he called “the biggest scam token of the bull run.”
Worldcoin’s Response
A Worldcoin spokesperson denied these allegations, stating that both the Worldcoin Foundation and Tools for Humanity (TFH), a contributing organization, take any accusations of insider trading seriously. The spokesperson told Cointelegraph:
“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 noted that neither organization found evidence to support the claims of insider trading or price manipulation. They stressed that Worldcoin adheres to a strict market integrity policy designed to prevent such activities. Additionally, the spokesperson highlighted that those covered by their policies are prohibited from disclosing confidential information relevant to WLD purchasing decisions and were under an active blackout period, preventing them from trading WLD during the critical times in question.
The allegations surfaced shortly after Worldcoin announced a two-year delay in unlocking 80% of its token supply. On July 16, Tools for Humanity published a blog post extending the unlock period for tokens held by team members and investors. Following this announcement, WLD prices surged by 68% in two days, becoming one of CoinGecko’s top gainers.
