Worldcoin, the project aiming to create a universal digital identity system, is facing accusations of insider trading and price manipulation surrounding its native token, WLD. These allegations stem from a recent decision to delay the unlock schedule for 80% of its token supply.
On July 17th, DeFi Squared, a decentralized finance (DeFi) research account, published a post alleging that Worldcoin manipulated the price of WLD. The post further suggested that someone within the team might have used insider information to purchase WLD before the public announcement of the unlock delay. Pseudonymous blockchain investigator ZachXBT echoed these claims, calling WLD a “scam token” and accusing the team and investors of profiting from it.
Worldcoin vehemently denies these allegations. A spokesperson for the project assured Cointelegraph that they have “zero tolerance” for such activities and take all accusations seriously, even if unsubstantiated. They emphasized that neither the Worldcoin Foundation nor Tools for Humanity, the contributors behind the project, have found any evidence to support the claims. The spokesperson went on to highlight their strict market integrity policy designed to prevent insider trading and price manipulation.
Adding another layer of defense, the spokesperson revealed that individuals covered under their policies are prohibited from disclosing confidential information related to WLD purchases. They also claimed that during the relevant timeframe, the team was under a blackout period, further restricting any WLD trading activity.
These accusations coincide with Worldcoin’s decision to postpone the unlocking of 80% of its WLD supply by two years. The announcement on July 16th by Tools for Humanity extended the unlock period for tokens held by team members and investors. Interestingly, the price of WLD surged by 68% in the two days following the announcement, briefly becoming one of the top gainers on CoinGecko.
With conflicting narratives, only time will tell how these allegations unfold. Worldcoin maintains its innocence, but the community remains watchful. The coming days might reveal more about the factors influencing WLD’s price movements and the validity of the insider trading claims.