Worldcoin, a crypto-based digital identity project, recently revealed expansion plans by selling WLD tokens. It intends to release between 0.5 million and 1.5 million tokens each week for up to six months.
This sale might introduce 36 million WLD tokens in the circulating supply. Consequently, this would represent an 18.6% increase in the existing supply of 193 million tokens.
Worldcoin Aims to Release $195 Million Worth of WLD Tokens
The fresh 36 million tokens are worth around $195 million based on the current market price.
Having achieved a significant milestone of over 5 million orb-verified World ID users across 160 countries, Worldcoin says that it is experiencing growing demand for its services.
“To meet the increasing demand for orb-verified World IDs around the world and support the growth of the Worldcoin network, World Assets Ltd. (a subsidiary of the Worldcoin Foundation) expects to sell WLD tokens from the World Assets treasury in the coming months,” Worldcoin announced.
Read more: Where To Buy Worldcoin (WLD): 5 Best Platforms for 2024
This initiative aims to cater primarily to institutional trading firms outside the US, adhering to specific legal restrictions to prevent these tokens from entering the US market again.
The planned sale incorporates several safeguards, such as a potential 40-day lock-up period to prevent immediate resale of the tokens, especially to US persons or on platforms accessible within the US. By engaging multiple trading firms in a competitive process, World Assets strives to secure sale prices that align closely with the prevailing market rates.
However, the market context for this sale is challenging. Since March 10, Worldcoin’s price has plummeted by over 54%.
The addition of millions of new tokens could potentially depress the price further, especially since WLD is currently struggling to maintain a support level of $5.37. A breakdown below this threshold could trigger additional losses.
Conversely, there is optimism among some market participants. A crypto trader, Alpha, suggested on X (formerly Twitter) that a potential breakout could lead WLD to double its current value.
“WLD breakout is next off here! The breakout can target 2x off here towards 12,” Alpha said.
Nevertheless, the reality remains that the influx of new tokens might increase selling pressure, further impacting the price negatively.
OpenAI CEO Sam Altman, alongside Worldcoin CEO Alex Blania and Max Novendstern, launched the project in July 2023. Users of the World App can verify their identities by scanning their retinas at stations known as “Orbs.”
Read more: Worldcoin (WLD) Price Prediction 2024/2025/2030
In return for providing their biometric data, they are compensated with approximately 25 WLD tokens worth around $135. This innovative exchange underpins the utility and appeal of the Worldcoin ecosystem.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
