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A Worldcoin spokesperson said that they are taking the allegations seriously and won’t allow such activities under any condition.
Sam Altman’s iris-scanning project Worldcoin has rejected the recent allegations of insider trading that allowed a few beneficiaries to benefit from the WLD price movement. Interestingly, the company said that they have “zero tolerance” for such activities.
Last week on July 17, DeFi Squared, a DeFi insights account, posted on X that the Worldcoin project engaged in price manipulation using its native crypto WLD token. Additionally, the Defi account said that someone from the Worldcoin team “used insider information” to buy the WLD token while the project announced a delay to its native token unlock schedule.
Apart from DeFi Squared, another popular crypto analytics platform ZachXBT stated that the Worldcoin users profited from the “scam token”. The blockchain analyst accused team members and venture capitalists of being complicit in what ZachXBT has termed “the biggest scam token of the bull run”.
Worldcoin Rejects Allegations of Insider Trading
A Worldcoin spokesperson said that they are taking the allegations seriously and won’t allow such activities under any condition. The company’s spokesperson said:
“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 stated that the two organizations have not found any evidence supporting the claims of insider trading and price manipulation. The Worldcoin representative emphasized that they adhere to a strict market integrity policy designed to prevent such activities.
Moreover, the Worldcoin representative also added that the people covered by their company policies are “at all times prohibited from disclosing confidential information relevant to WLD purchasing decisions”. The spokesperson added that during the relevant timings, they were on an active blackout period while prohibiting them from engaging them in WLD trading activities.
The recent allegations against Worldcoin coincide with its decision to postpone the unlocking of 80% of its WLD supply by two years. On July 16, Tools for Humanity announced in a blog post that the unlock period for tokens held by team members and investors would be extended.
As of press time, Worldcoin’s native crypto WLD is trading at 6% down $2.33, and has a market cap of $666 million. the daily trading volume is down by 17% moving under $200 million.
