Decentralized identity project Worldcoin has firmly denied allegations that it allowed insiders to profit from movements of its token, citing its “zero tolerance” for such activities.
The announcement comes after DeFi Squared alleged in an X post that the Sam Altman’s project engaged in price manipulation of its Worldcoin (WLD) token. The account suggested that someone from the team might have used insider information to buy the token before the project announced a delay to its native token unlock schedule.
In addition to DeFi Squared, pseudonymous crypto investigator ZachXBT also accused Worldcoin of allowing insiders to profit from what he described as a “scam token.” ZachXBT claimed that team members and venture capitalists were complicit in what he termed “the biggest scam token of the bull run.”
A Worldcoin spokesperson denied these allegations, stating that the project takes such claims seriously and would not permit such activities.
The spokesperson further added that both organizations have found no evidence to support the claims of insider trading and price manipulation. Worldcoin asserts that it maintains a strict market integrity policy to prevent these activities.
The spokesperson explained that individuals covered by their policies are “at all times prohibited from disclosing confidential information relevant to WLD purchasing decisions” and were under an active blackout period, which barred them from engaging in any WLD trading activities during the relevant times.
The allegations come amid Worldcoin’s decision to delay the unlocking of 80% of its WLD supply by two years. On July 16, Tools for Humanity published a blog post extending the unlock period for tokens held by its team members and investors.
This means that the vesting schedule will be more gradual until 2029, deviating from the original plan. Token unlocks are generally viewed as bearish events because they increase the circulating supply and allow early investors to potentially recoup their equity by selling in the open market.
Following the unlock delay announcement, WLD prices surged by 68% in two days, making it one of top gainers at the time. Currently, the token sits at $2.36.
