Allegations of Insider Trading
Worldcoin has recently been scrutinized following allegations of insider trading and price manipulation related to its native token (WLD). The DeFi insights account (DeFi Squared) and popular crypto investigator ZachXBT brought forward these allegations.
Both sources alleged that members of the Worldcoin team and associated venture capitalists have used privileged information for personal gain. On July 17, DeFi Squared’s post on X accused Worldcoin of manipulating the WLD’s price, arguing that insiders purchased the token ahead of a significant announcement.
This announcement pertained to a delay in the unlocking schedule for the WLD token, which DeFi Squared claimed led to an opportunity for those with inside information to profit. ZachXBT echoed similar concerns, labeling the WLD token as a “scam” and accusing the project team and its financial backers of being complicit in unethical activities. These allegations have cast a shadow over Worldcoin, prompting a strong response from the organization.
Worldcoin’s Response to Insider Trading Allegations
However, a spokesperson for Worldcoin addressed these allegations, emphasizing the project’s commitment to ethical practices. According to the spokesperson, Worldcoin and its associated organization, Tools for Humanity, have strict policies in place to prevent insider trading and price manipulation.
They reiterated that any form of such activity would not be tolerated under any circumstances. The spokesperson further clarified that an internal investigation found no evidence supporting the allegations of insider trading or price manipulation. They highlighted that individuals covered by their policies are prohibited from disclosing any confidential information related to WLD purchasing decisions.
Market’s Response to Unlock Delay
Remarkably, this controversy coincided with Worldcoin’s recent decision to delay the unlocking of 80% of its WLD token supply by two years. Tools for Humanity announced this extension on July 16 via a blog post.
Following this announcement, the price of WLD surged by 68% within two days, marking a significant gain in the token’s value. At the time, WLD was noted as one of CoinGecko’s top gainers.
This sharp increase in value fueled the allegations that insiders had capitalized on the information before it was publicly disclosed. However, the price has since retraced and is currently $2.36.
NPC Labs Raises $21M for GameFi Development
Meanwhile, NPC Labs, a new GameFi infrastructure company, has successfully raised $21 million in funding to advance gaming development on Base, a Coinbase layer-2 network. This startup, established by three former Coinbase employees, aims to transform how blockchain technology is used in gaming.
Pantera Capital led the funding round with $18 million. Makers Fund, Hashed, and Mirana Ventures also made significant contributions. The successful funding round highlights the growing interest in integrating blockchain technology with the gaming industry.
One of the top challenges developers face is reliance on major publishers, who often take up to 70% of the game’s revenue and can discontinue support if the game does not perform well financially. NPC Labs aims to shift this dynamic, empowering developers to retain more control and a larger share of the revenue from their games.
Daryl Xu, CEO of NPC Labs and a former business development associate at Coinbase, highlighted the company’s goal to support game developers more effectively. Xu pointed out that NPC Labs plans to offer a platform where developers can market their games directly and avoid the pitfalls associated with traditional publishing models.