Worldcoin Denies Market Manipulation

According to Worldcoin spokesperson, individuals subject to their policies are prohibited from disclosing confidential info concerning WLD purchasing decisions.

Project on Human Identity Worldcoin has denied the recent allegations that it has permitted insiders to benefit from the movements of its token and has emphasized that it has a “zero tolerance” policy for such activities.

DeFi Squared, a decentralized finance (DeFi) insights account, published an X post on July 17 alleging that the Worldcoin project was involved in price manipulation.

Additionally, the account suggested that it was feasible for an individual from the team to use “insider information” to acquire the token before the project announced a delay in its native token release schedule.

In addition to DeFi Squared, the pseudonymous crypto investigator ZachXBT also expressed his opinion, asserting that Worldcoin permitted insiders to profit from its “scam token.” The blockchain analyst stated that venture capitalists and team members are involved in what ZachXBT called “the largest scam token of the bull run.”

Worldcoin refutes allegations that it permits insider trading.

A spokesperson refuted the allegations directed at Worldcoin. These allegations are being taken seriously by Worldcoin, and they are not allowing any such activities. The spokesperson disclosed to 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 stated that the two organizations have not discovered any evidence that supports the allegations of insider trading and price manipulation. The Worldcoin representative asserts that they enforce a stringent market integrity policy to prohibit these activities.

The representative of Worldcoin also stated that individuals subject to their policies are “always prohibited from disclosing confidential information that is pertinent to WLD purchasing decisions.”

The spokesperson further said they were in an active blackout period during the relevant timeframes, preventing them from engaging in WLD trading activities.

Worldcoin announces a two-year deferral in the unlocking of token

The most recent allegations against Worldcoin are in response to its decision to postpone the unleashing of 80% of its supply by two years. Tools for Humanity (TFH) recently published a blog post on July 16 that extended the activation period for tokens held by its team members and investors.

One of CoinGecko’s top gainers at the time, WLD prices surged by 68% in two days following the announcement of the activation delay. At present, the token is valued at $2.36.