Worldcoin denies insider trading allegations amid speculation of team members using insider information.
Worldcoin has refuted allegations of insider trading. Individuals from the team were suspected of insider trading earlier this week.
DefiSquared pointed out that “It appears likely (but not proven) that someone from the team or VCs used insider information to frontrun buying the news before it was even publicly announced.”
A spokesperson for Worldcoin has since informed Cointelegraph that the organization has a “zero tolerance” policy regarding insider trading.
“The Worldcoin Foundation and contributor Tools for Humanity take any allegation of insider trading, even if unfounded and unsubstantiated, seriously and would have zero tolerance for such activity if it were to occur,” the spokesperson said.
The spokesperson also stated that neither organization has discovered any evidence to substantiate the claims of insider trading or price manipulation. The spokesperson emphasized that Worldcoin maintains a stringent market integrity policy that is intended to prevent the occurrence of such activities.
Additionally, the spokesperson clarified that individuals who are subject to their policies are always prohibited from disclosing confidential information that is pertinent to WLD purchasing decisions.
These individuals were prohibited from participating in any WLD trading activities during the relevant periods due to an active blackout period.
Most of the gains have been erased since the token release, and WLD is currently trading at the same price as before the announcement.
