Brace For Impact: Worldcoin Team Plans To Sell 1.5 Million WLD Tokens Every Week For 6 Months
April 24 2024 - 11:00AM
NEWSBTC
Worldcoin (WLD) could be the victim of a significant downtrend in
the coming weeks. The team plans to sell as many as 1.5 million WLD
tokens over the next six months, which could bring about massive
selling pressure and affect the token’s price. Details About
The Proposed WLD Token Sale Worldcoin revealed in a blog post that
World Assets (a subsidiary of the Worldcoin Foundation) will sell
between 500,000 and 1.5 million Worldcoin tokens weekly to a group
of institutional trading firms outside the United States. This
token sale will be done through private placements and is expected
to last up to six months. Related Reading: XRP Wallets
Holding At Least 1 Million Coins Nears All-Time High As Sentiment
Improves Therefore, as many as 36 million WLD tokens could be sold
under this arrangement. Interestingly, these tokens do not form
part of the current circulating supply, as Worldcoin stated that
“the circulating supply of WLD will thus increase correspondingly”
as the token sales progress. That means Worldcoin’s circulating
supply could see an 18.6% increase to over 229 million WLD tokens
once the private sale is done. This development is
undoubtedly a cause for concern for WLD holders, given the impact
it could have on the crypto token’s price action. However,
Worldcoin tried to downplay the effect of this token sale, noting
that a weekly sale of between 500,000 and 1.5 million WLD tokens
represents “less than 0.1% to 0.4% of the current weekly trading
volume. Meanwhile, World Assets “may seek to include a 40-day
lock-up period restricting the resale of WLD by trading firms,”
Worldcoin remarked. This could also help reduce the high volatility
that could arise from an immediate sell-off by these trading
firms. The Worldcoin Ecosystem WLD is the native token of
Worldcoin, a project that focuses on the digital verification of
humans. Users in the Worldcoin ecosystem get verified through a
device called the “Orb.” Since launching last year, the project,
co-founded by Open AI’s CEO Sam Altman, has drawn criticism, with
many, including Ethereum’s co-founder Vitalik Buterin, raising
privacy and legal concerns. Related Reading: Analyst Says XRP
Price Will Reach $100, But This Needs To Happen First Authorities
in different countries have investigated the project as they
believe its data collection method may have breached certain
privacy laws. NewsBTC also recently reported that Worldcoin faces a
potential fine of $1.2 million in Argentina for violating the
country’s National Consumer Protection Law. Despite the regulatory
scrutiny, the team is still looking to expand. In the blog post,
they hinted that the proceeds from this token sale will be directed
towards meeting the “increasing demand for orb-verified World IDs
around the world.” At the time of writing, Worldcoin is trading at
around $5.4, down over 6% in the last 24 hours, according to data
from CoinMarketCap. WLD price falls to bearish pressure |
Source: WLDUSDT on Tradingview.com Featured image from The Block,
chart from Tradingview.com
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