WorldCoin to Release $195 Million in WLD Tokens: Price Impact
Worldcoin, a crypto-based digital identity project, recently revealed plans to expand by selling WLD tokens. It intends to release 0.5 million to 1.5 million tokens every week for up to six months.
This sale will likely introduce 36 million WLD tokens into the distribution supply. Therefore, this represents an 18.6% increase over the current supply of 193 million tokens.
WorldCoin wants to release $195 million worth of WLD Tokens
The new 36 million tokens are worth around $195 million at current market prices.
Achieving a significant milestone of more than 5 million Orbi-Verified World ID users in 160 countries, WorldCoin says demand for its services is growing.
“To meet the growing demand for Orbi-verified World IDs around the world and to support the growth of the Worldcoin network, World Assets Ltd. (part 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 launch is primarily for institutional businesses outside of the US, in compliance with specific legal restrictions to prevent these tokens from re-entering the US market.
The proposed sale includes several safeguards, such as a 40-day lock-up period, to prevent the tokens from being sold too quickly, particularly to US persons or on US-based platforms. By engaging multiple businesses in a competitive bidding process, Global Properties strives to maintain sales prices consistent with current market values.
However, the market conditions for this sale are challenging. Since March 10, Worldcoin's price has fallen by more than 54 percent.
The addition of millions of new tokens could further depress the price, especially since WLD is currently struggling to maintain the $5.37 support level. Failure below this limit may result in additional losses.
On the contrary, there is optimism among some market participants. A crypto trader has suggested that a potential crash in X (formerly Twitter) could double WLD's current price.
“The WLD breakout is here next! The gap can aim for 12 at 2x here,” Alpha said.
However, the fact remains that the influx of new tokens can increase selling pressure, thus negatively impacting the price.
OpenAI CEO Sam Altman launched the project in July 2023 along with WorldCoin CEOs Alex Blanea and Max Novendstern. World App users can verify their identity by scanning their retinas at sites called “Orbs.”
Read More: Worldcoin (WLD) Price Prediction 2024/2025/2030
By providing their biometric information, they will be paid around $135 in 25 WLD tokens. This innovative exchange underpins the utility and appeal of the Worldcoin ecosystem.
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