Worldcoin, the pioneering human identity initiative, has firmly rebuffed recent allegations of insider trading and price manipulation concerning its native token, emphasizing its stringent stance against such practices.

On July 17, DeFi Squared, a prominent decentralized finance (DeFi) insights account, posted on X, accusing Worldcoin of manipulating the price of its token, WLD. The post suggested that insiders might have exploited confidential information to purchase the token ahead of an announcement about a postponement in the token’s unlock schedule.

Adding fuel to the fire, pseudonymous crypto investigator ZachXBT also accused Worldcoin of facilitating insider gains from what he labeled as a “scam token.” He alleged that both team members and venture capitalists were involved in what he deemed “the largest scam token of the bull run.”

Read more: Worldcoin Surges 15% Amid Investor and Team Lockup Extension

Worldcoin’s Rebuttal to Insider Trading Allegations

In response, a Worldcoin spokesperson vehemently denied these accusations. The spokesperson assured Cointelegraph that Worldcoin treats such allegations with the utmost seriousness and maintains a zero-tolerance policy towards any form of insider trading. The representative asserted:

“The Worldcoin Foundation and contributor Tools for Humanity are resolute in their stance against insider trading. Any such activities, if they were to occur, would be met with zero tolerance.”

The spokesperson further explained that no evidence supporting the claims of insider trading or price manipulation had been found. Worldcoin upholds a stringent market integrity policy designed to thwart such misconduct. Additionally, individuals governed by these policies are barred from disclosing any confidential information pertinent to WLD trading decisions. During the pertinent period, a blackout was in effect, prohibiting any trading activities involving WLD.

Token Unlock Delay and Market Impact

These allegations surfaced concurrently with Worldcoin’s decision to postpone the unlocking of 80% of its WLD supply by an additional two years. On July 16, Tools for Humanity announced this extension in a blog post, affecting tokens held by team members and investors.

Following the announcement of the unlock delay, WLD’s price surged by 68% within two days, propelling it to one of CoinGecko’s top gainers at that time. Presently, the token is valued at $2.36.