WLD Price At Risk As FTX Plans To Sell 22.3 Million Worldcoin Tokens

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As an experienced analyst with a background in both traditional finance and blockchain technology, I find myself intrigued by the recent developments surrounding Worldcoin (WLD). The news of FTX estate auctioning off 22.3 million WLD tokens, valued at approximately $37.7 million, has undeniably shaken the market, with a weekly fall of over 20%.

As a researcher observing the market dynamics, I noticed a significant drop of approximately 2% in the WLD price upon hearing the news that the FTX estate was readying to auction off 22.3 million Worldcoin (WLD) tokens, locked away, valued around $37.7 million at a discounted rate.

It’s said that this could have been one of the strategies the estate was attempting to implement for the sake of its creditors during their recovery process.

WLD Price Records Weekly Fall Over 20%

Currently, the WLD price is approximately $1.70, but it has dropped more than 20% over the past week. Potential buyers have until midnight UTC on Wednesday to submit their bids. On Thursday, notifications about successful or accepted bids will be sent out. The WLD tokens are anticipated to be sold at a significant discount, ranging from 40% to 75% off the current WLD price of around $1.69.

The property holds approximately 22.3 million WLD tokens in total, implying no more auctions for these tokens will take place. From 2024 to 2028, these tokens will be gradually released daily. Specifically, the first release consists of 20,539 WLD tokens that will become accessible daily from December 1, 2024 to July 24, 2026. The second release is a series of 13,689 WLD tokens, which will be unlocked daily from July 25, 2026 to July 24, 2028. Nevertheless, one of the sources raised concerns about the extended lock-up period for these tokens, along with another source.

As per Mike Cagney, co-founder and CEO of Figure Markets, the FTX estate is putting up its Worldcoin WLD tokens at auction, and it’s possible that the price could drop by over 75%. He mentioned that these WLD tokens will become accessible daily until the year 2028. Figure Markets is considering setting up a fund to participate in the WLD token auction, similar to their approach with the FTX estate’s Solana auction earlier this year, as stated by Cagney.

Is This the End Of The Price Rally?

Earlier this year, FTX’s assets (previously known as the FTX estate) offloaded their holdings of Solana and Metaplex tokens. More recently, they also divested from their Worldcoin shares. In May, reports suggest that FTX successfully sold its oversubscribed $7.5 billion portfolio of Solana tokens to interested investors at a lower price, which included Pantera Capital as one of the buyers, along with other undisclosed investors.

The project, that has become infamous due to the very innovative process of verification with the so-called ‘orb’, recently announced the extension of World ID verification to Poland. This fact has gained much global attention and underlined the growing outreach and prominence of the World ID system in general.

Recently, crypto investment firms like Pantera Capital and ParaFi Capital bought approximately 62.6 million MPLX tokens that were previously owned by the FTX estate and were earlier with Wave Digital Assets.

Based on information from Arkham, it’s reported that the FTX estate is left with approximately $594 million in remaining assets. However, a significant portion, around $541 million, consists of FTT tokens belonging to FTX, which are highly illiquid and practically unsellable because the estate has valued them at zero.

Based on technical analysis predictions, it’s anticipated that the WLD price will likely rise throughout 2025. Specifically, the lowest projected value could be around $3.56, while the maximum might peak at $4.29. This year’s average estimate is approximately $4.00, suggesting a generally optimistic outlook for this token.

As an analyst, I’d like to highlight that Worldcoin is a cryptocurrency venture associated with tech mogul Sam Altman. It’s essential to note, however, that Altman holds dual roles; he is not only the founder of this crypto startup but also the co-founder and CEO of OpenAI – a pioneering AI company responsible for groundbreaking projects like ChatGPT and DALL-E.

Lately, OpenAI secured $6.6 billion in fresh funding, wrapping up a complex fundraising journey involving discussions with prominent tech firms and numerous global investors. This influx of capital is undoubtedly stoking ambition within OpenAI, a company known for its aggressive approach to AI development. The sector’s competition and interest are escalating as a result.

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2024-10-02 21:32