The Worldcoin cryptocurrency project shared plans to expand the ecosystem through the sale of WLD. The team intends to issue from 500 thousand to 1.5 million tokens every week for six months. As a result of the sale, 36 million WLD tokens will go into circulation. This will increase the existing supply of 193 million tokens by 18.6%.
Why is Worldcoin selling off WLD?
The initiative aims to support the growth of the Worldcoin network. The World ID project recently reached a significant milestone: 5 million users from 160 countries. Meanwhile, the number of World App users has reached 10 million people. According to representatives, demand for the platform’s services continues to grow. “To meet the growing demand for World ID identification worldwide and support the growth of the Worldcoin network, World Assets Ltd. (a subsidiary of the Worldcoin Foundation) plans to sell WLD tokens from the treasury in the near future,” the developers said in a recent post.
According to tradingview, at the time of writing, WLD is trading at $5.299. Thus, the 36 million tokens that the project will sell are valued at approximately $195 million. However, the sale of Worldcoin native coins is primarily aimed at institutional firms outside the United States. In addition, the initiative includes certain legal restrictions, the purpose of which is to prevent these tokens from re-entering the US market.
The planned sale also involves a number of precautions. For example, a 40-day lock-in period to prevent immediate resale of tokens. This is especially true for US persons on platforms available within the country. By involving multiple trading platforms in the bidding process, World Assets strives to ensure a sale price that closely matches prevailing market prices.
How will the sale affect the price of WLD?
However, the situation on the market for sale is difficult. Since March 10, the price of WLD has collapsed by more than 54%, and the upcoming sell-off could cause the value to fall further. Currently, the Worldcoin token is trying to hold the support level at $5.37. A break below this level threatens further losses.
However, some market participants remain optimistic. Thus, according to a crypto trader under the nickname Alpha on X (formerly Twitter), a potential breakthrough would double the current WLD rate.
“From here WLD will have a breakthrough! It could well lead to a doubling in value towards $12,” he wrote.
$WLD Breakout is next off here!
The breakout can target 2x off here towards 12$#BTCHalving2024 #BTC #ETH #Binance pic.twitter.com/I1I8mEZ8Ov
— Alpha (@nmalpha052) April 23, 2024
However, the reality remains that the influx of new tokens into the market could increase selling pressure. And this, in turn, will negatively affect the price of WLD. In addition, the Worldcoin project was launched by OpenAI CEO Sam Altman and current Worldcoin top managers Alex Blania and Max Novendstern in July 2023. World App users can verify their identity using their retina through settings known as Orbs. In exchange for providing their biometric data, users are compensated with 25 WLD tokens, valued at $135.
In mid-April this year, Worldcoin developers presented their own second-level network (L2) based on Ethereum (ETH) – World Chain. According to them, the blockchain is created “to accelerate the growth and use of World ID proof of identity.”
