Worldcoin will increase WLD token supply by 19% by selling to institutions over the next 6 months.
Digital identity initiative Over the next half-decade, Worldcoin may increase the supply of its WLD token by as much as 19% via a multitude of private transactions with institutions outside the United States.
According to a blog post by Worldcoin on April 23, World Assets, a division of the Worldcoin Foundation in charge of token issuance, will offer up to 1.5 million WLD (roughly $8.2 million) per week through “private placements to a select group of institutional trading firms” operating outside of the United States.
Worldcoin wrote, “World Assets anticipates selling between 0.5 million and 1.5 million WLD per week on average.” Consequently, the circulating supply of WLD will increase.
An increase of 1.5 million WLD tokens per week for six months corresponds to the introduction of 36 million new tokens to the market, which, according to CoinGecko data, are presently worth approximately $197 million. Private transactions of 193 million WLD tokens during the same period constitute an 18.6% expansion of the total supply currently in circulation.
Worldcoin announced that it would negotiate with individual trading firms, particularly those in direct competition, to execute private placements at prices close to “prevailing [WLD] market prices” as feasible to reduce the token’s potential price impact.
Worldcoin boasts a market capitalization of $1 billion at its valuation. This, however, pales compared to the $54.5 billion fully diluted value (FDV), which would be the tokens’ total worth if they were in circulation.
CEO of OpenAI Sam Altman, current Worldcoin CEO Alex Blania, and CEO of biometrics research company Mana Max Novendstern founded Worldcoin, which made its beta debut in July 2023.
Worldcoin, a digital identity project based on cryptocurrencies, positions itself as a remedy for identity concerns arising from swift advancements in artificial intelligence. Additionally, through its proprietary WLD token, it introduces an innovative universal basic income framework.
Worldcoin users authenticate themselves through the organization’s “World App” by scanning their retinas at devices designated as “Orbs.” In return for their biometric information, users receive 25 Worldcoins, valued at approximately $137.
Leading a broader increase in the value of cryptocurrencies associated with artificial intelligence, Worldcoin surged 435 percent from its inception on July 24 at $2.17 to its all-time high of $11.74 on March 10.
Nevertheless, in recent weeks, its value has declined by over 53% from its peak and is presently being exchanged for $5.49.