The price of Worldcoin (WLD) fell by over 2% after reports emerged that the FTX estate is preparing to auction off 22.3 million locked Worldcoin tokens at a discount, aiming to recover funds for its creditors.
WLD Price Drop Amid Auction News
The FTX estate is set to auction 22.3 million Worldcoin tokens (WLD), valued at approximately $37.7 million. The auction is part of efforts to recover assets for creditors following FTX’s collapse. This news led to a 2% decline in WLD’s price, with the token now trading around $1.70, down over 20% for the week.
Bids for the auction are due by midnight UTC on Wednesday, with results expected on Thursday. The locked tokens are expected to be sold at a significant discount, potentially between 40% and 75% off the current market price.
Unlocking Timeline for WLD Tokens
The auctioned WLD tokens will unlock gradually until 2028. The first batch of 20,539 tokens will start unlocking daily from December 1, 2024, until July 24, 2026. The second batch of 13,689 tokens will unlock daily from July 25, 2026, to July 24, 2028. This extended lock-up period has raised concerns among potential investors.
Mike Cagney, co-founder and CEO of Figure Markets, confirmed the FTX estate’s auction plan, mentioning that Worldcoin tokens could be discounted by over 75%. Cagney also noted that Figure Markets may set up a fund to participate in the auction, similar to their involvement in the FTX estate’s earlier Solana auction.
Will WLD’s Price Rally End?
Earlier this year, the FTX estate sold its holdings in Solana and Metaplex tokens, with investors like Pantera Capital participating in these auctions. The auction of Worldcoin tokens follows these sales as part of FTX’s broader recovery plan.
Meanwhile, Worldcoin has gained attention for its innovative verification process using the “orb” and recently expanded its World ID verification to Poland, further increasing its global reach. Despite the current market uncertainty, technical analysis suggests that WLD could see price increases in 2025, with forecasts predicting a high of $4.29.
