Human identity project Worldcoin dismissed the recent claims that it enabled its insiders to trade on the movements of the token saying that the company has “zero tolerance” for such practices.
On the same date, the decentralized finance (DeFi) insights account DeFi Squared posted an X post that the Worldcoin project manipulated the price of its Worldcoin
WLD token. Additionally, the account said that it could be that someone within the team ‘chanced’ on ‘insider information’ to purchase the token before the project decided to extend the lockup period of its native token.
In addition to DeFi Squared, the pseudonymous crypto investigator ZachXBT also joined in the conversation to point out that Worldcoin was enabling insiders to profit from the ‘scam token. ’ According to the blockchain analyst, team members, and venture capitalists are involved in what ZachXBT described as ‘the biggest scam token of the bull run’.
Worldcoin denies allegations of allowing insider trading
The Company rubbished the claims through a Worldcoin spokesperson. From the Worldcoin’s side, they stated that, it is taking these allegations seriously and would not allow such activities. The spokesperson told Coinmicroscope:
“The Worldcoin Foundation and contributor Tools for Humanity would regard any accusation of insider trading regardless of its credibility and would strictly prohibit it should there be any incidence of it.”
The spokesperson went on to say that the two organizations have not been able to uncover substantiation for all the allegations of insider trading and price manipulation. The representative of Worldcoin says that they uphold a zero-tolerance policy on market manipulation and similar practices that are cultivated by them.
The Worldcoin representative also stated that the people who are under their policies are “at all times restricted from divulging any information that is relevant to WLD purchasing decisions.” The spokesperson further said that during the relevant timings, they were on an active blackout period that does not allow them to trade in WLD.
