Worldcoin declines as FTX plans to auction locked WLD tokens
|- FTX estate is set to auction its locked WLD tokens later in the week to raise funds for creditors.
- The company currently holds 22.3 million locked WLD tokens valued at $37 million.
- WLD is down over 6% as it prepares for over $300 million unlock.
Worldcoin (WLD) is down over 6% on Wednesday following news of FTX estate's plan to sell its WLD holdings this week. The sale will be made via an auction to raise funds for its creditors.
FTX is set to sell locked WLD tokens worth nearly $38 million
In a bid to settle the rest of its creditors, FTX estate plans to sell off its locked Worldcoin tokens later this week via an auction. In an X post on Monday, Figure CEO stated that the auction will be conducted this week with a "75%’ish" discount.
FTX currently holds 22.3 million locked WLD tokens worth nearly $37 million, with which it plans to raise funds for its creditors. Interested participants are also required to apply with their bids within a limited period, as the company shows no interest in future auctions for this token. The Block stated that two of its sources also confirmed the news.
Earlier this year, FTX estate sold 1.8 million Solana (SOL) tokens, which generated approximately $232 million in an auction that concluded on April 25. Bids for these locked tokens ranged from $85 to $110 each, with successful bids settling around $95.
WLD has fallen 6% in the past 24 hours and may continue to decline following the potential FTX estate token auction.
Additionally, investors need to be cautious of a potential WLD supply shock in the coming weeks. Worldcoin will experience an unlock of WLD tokens worth $336 million throughout October.
Worldcoin's unlock schedule was originally set to end in 2026 but was shifted by an additional two years. The identity-based project will witness 2 million WLD tokens being unlocked daily until July 2028, after which it will have released 80% of its tokens into circulation.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.