WLD price fell over 2% when it was reported that the FTX estate was preparing to auction 22.3 million locked Worldcoin WLD tokens, valued at roughly $37.7 million, at a discount.

Allegedly, this would be part of the recovery efforts that the estate had been trying to pursue for its creditors.

WLD Price Records Weekly Fall Over 20%

At the time of writing, WLD price hovered around $1.70, but the weekly plunge was over 20%. Bids from interested buyers are due at midnight UTC time on Wednesday, while notifications about successful or accepted bids are expected on Thursday. The WLD tokens are expected to be offered at a discount in the range of 40% to 75% off the current WLD price of close to $1.69.

The estate has a total of 22.3 million WLD tokens, meaning there will be no further auctions for WLD tokens. The WLD tokens will unlock daily up to 2028: the first lot of 20,539 WLD tokens, which will unlock daily from 1 December 2024 to 24 July 2026, and the second lot of 13,689 WLD tokens that will unlock daily starting from 25 July 2026 to 24 July 2028. However, one of the sources below, coupled with a fourth source, felt uncomfortable with the long lock-up of these tokens.

According to an announcement made by Mike Cagney, the co-founder and chief executive of Figure Markets, the FTX estate is auctioning its position in Worldcoin WLD tokens, and WLD price could be discounted by more than 75%. He said these WLD tokens will be unlocked daily until the year 2028. Figure Markets contemplates creating a fund to bid on the WLD token auction, just like the firm did with the FTX estate’s Solana auction earlier this year, according to Cagney.

Is This the End Of The Price Rally?

The FTX estate, earlier this year, sold its Solana and Metaplex tokens’ stock before now selling its stake in Worldcoin. In May, it reportedly completed the sale of its $7.5 billion over-subscribed portfolio of Solana tokens at a discount to interested investors, which included Pantera Capital, among other 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.

Last month, some crypto funds, including Pantera Capital and ParaFi Capital, acquired 62.6 million MPLX tokens from Wave Digital Assets formerly held by the FTX estate.

According to data from Arkham, the FTX estate is said to be left with $594 million in residual assets. Of this, though, the lion’s share is about $541 million in FTX’s FTT token, highly illiquid and likely unsellable as the estate has marked it to zero.

According to technical analysis, the WLD price may increase during 2025. Concretely, the lowest rate could be $3.56, while the highest might reach $4.29. This year’s average forecast is about $4.00, with quite positive expectations for this token.

 Worldcoin is  the crypto startup from OpenAI founder Sam Altman. However, Altman is also the co-founder and CEO of OpenAI, the AI research and deployment company behind ChatGPT and DALL-E.

Recently, OpenAI has closed $6.6 billion in new funding, bringing an end to a convoluted fundraising process that involved negotiations with several of the major tech companies and a number of international investors. Sure to fuel ambitions at the aggressive AI developer, competition and interest in the sector continues to rise.

The post WLD Price At Risk As FTX Plans To Sell 22.3 Million Worldcoin Tokens appeared first on CoinGape.

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Filed under: News - @ October 2, 2024 6:24 pm