Worldcoin, a crypto-based digital identity project, has announced plans to expand by selling WLD tokens. The project intends to release between 0.5 million and 1.5 million tokens each week for up to six months, potentially introducing 36 million WLD tokens into circulation. This would represent an 18.6% increase in the existing supply of 193 million tokens.
The 36 million tokens are estimated to be worth around $195 million based on the current market price. Worldcoin has seen significant growth, with over 5 million orb-verified World ID users across 160 countries, leading to increased demand for its services.
In order to meet this demand and support the growth of the Worldcoin network, World Assets Ltd. plans to sell WLD tokens from the World Assets treasury in the coming months. The sale will primarily target institutional trading firms outside the US, with safeguards in place to prevent the tokens from entering the US market.
However, the market context for this sale is challenging, as Worldcoin’s price has dropped by over 54% since March 10. The addition of millions of new tokens could further depress the price, although some market participants remain optimistic about a potential breakout.
Despite the potential price impact, the innovative exchange model of Worldcoin, where users are compensated with WLD tokens for providing biometric data, underpins the utility and appeal of the Worldcoin ecosystem. The project was launched in July 2023 by OpenAI CEO Sam Altman, Worldcoin CEO Alex Blania, and Max Novendstern.
Overall, the planned sale of up to $195 million in WLD tokens represents a significant milestone for Worldcoin as it continues to grow and expand its presence in the digital identity space.
