Worldcoin (WLD) Faces Insider Trading Allegations Amidst Massive Token Unlock
NAIROBI (CoinChapter.com) — Worldcoin (WLD) denied recent allegations of insider trading and price manipulation. On July 17, DeFi Squared, a decentralized finance (DeFi) insights account, alleged that Worldcoin engaged in price manipulation of its WLD token. DeFi Squared claimed someone from the team used insider information to buy the token before announcing a delay in its native token unlock schedule.
Pseudonymous crypto investigator ZachXBT also accused Worldcoin of allowing insiders to profit from a “scam token.” According to ZachXBT, team members and venture capitalists engaged in “the biggest scam token of the bull run.” Worldcoin responded, stating it has zero tolerance for such activities.
In response, a Worldcoin spokesperson stated that they take all allegations seriously and have zero tolerance for insider trading. The spokesperson emphasized that there is no evidence supporting these claims and that Worldcoin maintains a strict market integrity policy to prevent such activities.
Additionally, the spokesperson said individuals covered by their policies are prohibited from disclosing confidential information related to WLD purchasing decisions.
Impact of Unlock Delay on Token Prices
According to a July 16 blog post, TFH will extend the unlock schedule for 80% of Worldcoin (WLD) tokens held by team members and investors. Originally set to unlock over three years, the tokens will now unlock over five years, starting on July 24, 2024. With this change, the affected tokens will unlock progressively over the following four years, concluding by the end of July 2028.
This delay led to a 68% price surge within two days, making WLD a top gainer. Despite the allegations, Worldcoin’s token experienced significant price growth, reflecting strong market confidence. As of press time, Worldcoin’s WLD traded at $2.21, down 7.38% in the past day. It has a market cap of $630,153,509 and a daily trading volume of $217,411,292, down by 3.32%.
Worldcoin (WLD) Massive Token Unlock Begins
Worldcoin (WLD) is entering a new phase of token unlocking. Starting on July 24, the project will unlock 238 billion WLD, valued at approximately $5.545 billion, over the next four years. This process will involve the daily release of 1.63 million WLD tokens.
In preparation for this event, Worldcoin sent 990 million WLD to address 0x2E3…8e5 and subsequently transferred 494 million WLD to 222 addresses. The project intends to manage the distribution systematically to maintain market balance. However, the token has lost 7% of its value, attributed to market fears of increased token circulation.
The post Worldcoin (WLD) Faces Insider Trading Allegations Amidst Massive Token Unlock appeared first on CoinChapter.
