Recently, the groundbreaking yet controversial Worldcoin (WLD) project has been accused of insider trading. However, Worldcoin has denied these allegations, stressing their “zero tolerance” policy for such activities.
Suspicious Activities and Criticism of Worldcoin
On July 16, Worldcoin announced that the tokens would be locked for two more years. Initially, WLD tokens were to be released gradually over three years, but this process will now take five years. This news had a significant impact on the market, with the WLD price doubling in two days.
The following day, crypto account DeFi Squared claimed in a blog post that Worldcoin was engaging in price manipulation. The account suggested that someone within the team used insider information to purchase tokens just before the “token lockup” was announced. According to the account, highly suspicious buying activity occurred 24 hours prior to the announcement.
Noted crypto sleuth ZachXBT also heavily criticized the project. “Shame on all the venture capitalists and team members who are complicit in the biggest scam token of the bull run and did nothing to prevent it,” he said.
Worldcoin denies all allegations
Worldcoin has since responded to these allegations. A spokesperson for Worldcoin stressed that the organization takes these allegations seriously and would never allow such activities.
“The Worldcoin Foundation and contributor Tools for Humanity take any allegations of insider trading seriously and have a zero-tolerance policy for such activity,” the spokesperson said.
In addition, the spokesperson added that no evidence was found to support the allegations of insider trading and price manipulation.
According to the Worldcoin spokesperson, there is a strict market integrity policy in place to prevent such activities. This policy prohibits persons under its jurisdiction from disclosing confidential information relevant to purchases around events that affect the WLD price. Furthermore, during the relevant periods, there was an active ‘blackout period’ during which no WLD trading activities were allowed.
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Source: https://newsbit.nl/is-worldcoin-schuldig-aan-insiderhandel/
