According to a report by a crypto industry media outlet, a spokesperson for the company Worldcoin has denied some allegations regarding alleged fraudulent activities carried out by the group.
A few days ago, several cryptographic experts highlighted clear signs of insider trading and market manipulation by members of the Wordlcoin team.
In the meantime, the crypto WLD continues to lose points very quickly.
Let’s see all the details of the news below.
Experts criticize the Worldcoin team and highlight signs of insider trading and market manipulation
On July 17, 2024, the expert cryptocurrency trader “DefiSquared” accused Worldcoin of promoting a real scam to the detriment of WLD holders.
According to the user, who boasts the position of top #1 trader on Bybit, the team of Worldcoin and the affiliated investors allegedly manipulated the price of the token with frequent insider activities.
In a research conducted by himself, it shows how the team artificially controlled WLD maintaining an “unfair” valuation of 30 billion dollars fully diluted.
Dropping my most extensive research piece on Worldcoin to date. With insider unlocks just 8 days away, I encourage you all to give it a read and stay informed. https://t.co/5668JzlnUc
— DeFi^2 (@DefiSquared) July 17, 2024
Even the well-known on-chain detective ZachXBT has joined in denouncing the improper behavior of the VC and the representatives of Worldcoin. The expert sent a subtle jab at the promoters of this scam, among whom stand out figures such as Nick Tomaino, Sam Bankman Fried and 3AC. These are his words on X:
“Shame on all the VCs and team members who are complicit in the biggest scam against the bulls and did nothing to stop it.”
More closely, the accusations concern the way in which the structure orbiting around Worldcoin would have managed the unlocks of WLD, with a low circulating supply and large future emissions.
The reckless management of the tokenomics of the token, and the insider activities carried out by market makers and private investors in conjunction with certain events, would have created favorable market conditions.
All this has been aimed at offering frequent profit opportunities to the team, with retail purchases becoming the exit liquidity for the large holders of WLD.
According to DefiSquared, at the moment Korean users are the ones who have most supported the unjustified quotations of the crypto. On the Korean exchange Bithumb, in fact, tokens are held for 26% of the circulating supply of WLD.
The response of Worldcoin: all accusations denied
A spokesperson for Worldcoin stated in a recent interview that the project is in no way involved in the practice of market manipulation.
Emphasizing that their team “has zero tolerance” towards such fraudulent activities, they condemned any attempt to cast the technology company in a bad light.
Already during the Token2049 event in Dubai held in April, the CEO of Tools of Humanity Alex Bania had denied any form of control over WLD.
Now the Worldcoin team is pushing even harder to refute such accusations. These are the words of the spokesperson:
“The Worldcoin Foundation and the contributor Tools for Humanity take any accusation of insider trading seriously, even if unfounded and baseless, and would have zero tolerance for such activity if it were to occur.”
The speech referred to what was previously written by DefiSquared regarding the use of “informazioni privilegiate” that the team would have exploited to buy before a probable price increase. The complaint was immediately deplored, citing a lack of precise and reliable data.
According to what has been stated, the two organizations leading the biometric iris recognition system have not found concrete evidence of price manipulation.
The Worldcoin representative also states that they maintain a strict market integrity policy that works to prevent these activities.
In this regard, it was recalled that people holding political positions cannot in any way disclose confidential information related to the purchase decisions of WLD.
The price action in bear of the crypto WLD: -28% in a week
The accusations against Worldcoin started when DefiSquared noticed anomalous behavior in the price of WLD, before a positive news had been announced.
In fact, on July 16, Tools for Humanity published a post on their blog to delay the token unlocks by two years, which is positive for the price action of WLD.
The strange thing is that the cryptocurrency had already grown strongly 24 hours before the announcement of the delay in the unlocking of the circulating supply.
At the time of writing the article WLD marks a price of 2.32 dollars, 28% lower compared to the prices of last week.
The positive news announced regarding the unlocks of the token managed to lift its price action. Not even the denial of the accusations of insider trading and manipulation helped to resume the bull run, and indeed it sank WLD below the EMA 50.
From March 2024 to today the currency loses about 80% of its value. Despite this, only 2.8% of the total supply is actually present on the market.
This data represents a strong warning sign: although short-term rises are always possible, the long-term path is already set.
Most likely WLD will continue to lose ground in the coming years, and will be heavily penalized by the selling pressure from the unlocks.
