Worldcoin Set to Boost WLD Token Supply by 19% Through Private Sales to Non-U.S. Institutions
Summary:
Worldcoin, a digital identity project, plans to inflate the supply of its WLD token by roughly 19% over the next six months through private sales to non-US institutions. An estimated 36 million new tokens, valued at around $197 million, will hit the market. The project is aiming to minimize potential price impact on the token and negotiations will be held with trading firms. Launched in 2023, Worldcoin offers a solution to identity issues while alos introducing a new universal basic income model via its WLD token.
The digital identity scheme, Worldcoin, intends to expand its WLD token availability by as much as 19% over the forthcoming six months. This will be facilitated through a variety of private transactions to institutions outside of the United States. In a blog post dated April 23, it was stated by Worldcoin that World Assets, the Worldcoin Foundation's subsidiary responsible for token distributions, will offer up to 1.5 million WLD, approximately valued at $8.2 million, weekly. These will be sold through a series of "private placements to a select group of institutional trading firms" that function outside the U.S.
Over the next six months, Worldcoin plans to augment the supply of its WLD token, according to Worldcoin. "World Assets plans to sell between 0.5 million and 1.5 million WLD per week on average," stated Worldcoin. "This will cause the WLD's circulating supply to increase proportionately."
A weekly supply increase of up to 1.5 million WLD tokens for half a year equates to an influx of 36 million new tokens into the market. According to current CoinGecko data, these tokens are estimated to be worth approximately $197 million. With a present circulating stock of 193 million WLD tokens, these private sales amount to an 18.6% boost in total available supply over the same period. Worldcoin plans to negotiate private placements with individual trading firms, particularly those competing against each other, as close to "prevailing [WLD] market values” as possible to minimize any potential token price impact. At present rates, Worldcoin boasts a market cap of $1 billion. However, this is modest compared to its completely diluted value (FDV) of $54.5 billion, the entire value if all tokens were in circulation.
Worldcoin, which was launched in July 2023 following a beta phase, was established by OpenAI CEO Sam Altman along with current Worldcoin CEO Alex Blania and Max Novendstern, who also presides as the CEO of the biometrics research company, Mana. Marketing itself as offering a resolution to identity issues created by fast-paced AI advancements whilst also advocating a fresh universal basic income model through its WLD token, Worldcoin users confirm their identity by scanning their retinas using the company's "World App" and "Orbs." Users are rewarded approximately 25 Worldcoin, valued at around $137, for sharing their biometric data. A broader upswing in the value of AI-related crypto projects led to Worldcoin surging 435% since its launch, which was priced at $2.17 on July 24, reaching a peak of $11.74 on March 10.
However, the price has dropped more than 53% from its zenith in recent weeks, currently sitting at $5.49.
Published At
4/24/2024 5:48:25 AM
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