Worldcoin Refutes Insider Trading Allegations

Sam Altman’s Worldcoin project has denied allegations of insider information disclosure to major investors of the WLD token and emphasized its “intolerance” towards such activities. Company representatives informed Cointelegraph of this stance.

On July 17, on-chain investigator ZachXBT labeled WLD as the “biggest scam token of the bull run,” citing a report by another researcher known as DefiSquared.

According to the analyst, the available supply volume remains at 2.7% — 276 million WLD out of a total of 10 billion. This figure has raised concerns about the asset’s inflation.

Experts pointed to suspicious price movements of the coin before each significant announcement as evidence of insider trading. As confirmation of the latest hypothesis, analysts cited the token’s reaction to the news of extending the lock-up period for investors, Tools for Humanity developers, and early project participants from three to five years.

A Worldcoin spokesperson stated that the company takes these accusations seriously and will not tolerate such actions.

“The Worldcoin Foundation and Tools for Humanity take any allegations of insider trading seriously, even if they are unfounded and unsupported by evidence, and are categorically opposed to such activities,” the company stated.

Project representatives added that they have not found evidence of confidential information disclosure or price manipulation. Worldcoin adheres to a strict market integrity policy, according to the statement.

Individuals associated with the company are “prohibited at any time from disclosing confidential information related to decisions about purchasing WLD,” the startup team emphasized.

At the time of writing, WLD is trading at $2.33, having fallen by 21.5% over the past 30 days.

In July, the company behind Worldcoin, Tools for Humanity, hired four high-ranking former employees from Apple, Google, Meta, Tesla, and X for leadership positions.

The Worldcoin Foundation team also launched a preliminary version of the L2 solution World Chain for developers.