Worldcoin ( WLD) price has dropped by 7% as the project enters a new phase of token unlocking. The unlocking cycle scheduled to begin on July 24 will unlock 238 billion WLD (5545 billion USD) within the next four years.
This unlock comes at a time when there are numerous allegations of insider trading and WLD price manipulation. However, traders are anxious waiting for the effects of the token unlock to either extend the bearish trend or pave way for a bullish rally.
Worldcoin Massive Token Unlock
As per the recent report, Sam Altman’s Worldcoin will be unlocking 2.38 billion WLD tokens. This process will take four years, and in the course of these four years, 1.63 million WLD tokens will be released daily.
In anticipation of this event, Worldcoin sent 990 million WLD to address 0x2E3. .. 8e5 and later on transferred 494 million WLD to 222 addresses.
The tokens of Worldcoin (WLD) investors and team will enter the unlocking cycle starting tomorrow (July 24). Investors and the team have a total of 2.38 billion WLD ($5.545B) which will be unlocked linearly over the next four years (1.63 million WLD per day). Worldcoin is…
— Wu Blockchain (@WuBlockchain) July 23, 2024
The project intends to manage the distribution in a systematic manner in order to maintain market balance. Nevertheless, the token has lost 7% of its value which can be attributed to the market fear of more tokens being put into circulation.
Allegations of Insider Trading and Price Manipulation
Worldcoin has recently been accused of insider trading and price manipulation. A decentralized finance information account known as DeFi Squared accused the Worldcoin project of permitting insiders to benefit from the trading of the project’s token. Also, the crypto investigator ZachXBT accused the project of allowing the members of the team and venture capitalists to reap the benefits of what he called a ‘scam token.’
Worldcoin has, however, come out to refute these allegations and claims made against it. A representative of the project emphasized that both the Worldcoin Foundation and the contributing party Tools for Humanity do not allow insider trading in any way.
The spokesman stated that there are no facts to back up allegations of insider trading or price manipulation. The representative revealed that employees protected by the project’s policies are not allowed to share sensitive information regarding WLD procurement activities.
WLD Price Reaction and Exchange Support
The allegations and the upcoming token unlock have surely influenced the market sentiment. This recent decline of the WLD’s value signifies that the investors are concerned. However, major exchanges like Binance have supported Worldcoin which might offset some of the negative sentiments to some extent.
During the dip, WLD’s price swayed between an intra-day high and low of $2.47 and $2.26, respectively. Concurrently, WLD’s market capitalization and 24-hour trading volume also plummeted by 6.50% and 14.11%, respectively, to $646,261,378 and $207,276,332.
#Worldcoin is under scrutiny after delaying the unlock of 80% of its native tokens, leading to accusations of price manipulation and insider trading.
The token price surged by 68% following the announcement, raising suspicions of strategic timing and misleading market practices… pic.twitter.com/KMHuHXTmrc
— Satoshi Talks (@Satoshi_Talks) July 23, 2024
According to a Coingape report, Binance backing of the project can also be seen through allowing users to buy and sell WLD using various local payment options, thus increasing the accessibility.
However, the accusations of insider trading have raised concerns over the legitimacy of Worldcoin even with the support of exchanges. The accusations have raised more questions on the project particularly after WLD’s price rise of 68% after an announcement of delayed token unlock schedule.
Also Read: VanEck Advisor Flags Risk of Coinbase As Majority Ethereum ETF Custodian
The post WLD Price Slips 7% Ahead Of Massive Token Unlock appeared first on CoinGape.
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