FTX plans to sell 22.3 million Worldcoin (WLD) tokens at a 40-75% discount, potentially causing short-term price pressure.
The large token selloff could have a bearish effect on WLD prices, as seen in previous market events.
While the auction may lead to a price drop, some view it as a long-term investment opportunity if it's a one-time event.
Trading platform FTX plans to unload 22.3 million of Worldcoin (WLD), at around 40-75% off the current price. This action has elicited lots of traffic among traders and investors in as much as it has provoked guesses about the alter of the price of WLD. The token sale that is planned at a deep discount through the auction can exert the negative pressure on WLD prices in the short run and cause a probable price crash.
Sales of FTX Tokens and Market Moves
FTX is to sell WLD tokens at the time when both Worldcoin and the overall crypto industry face some turbulence. It means that selling 22.3 million tokens especially at such low prices could put a lot of pressure on demand by increasing the actual supply available. In the past the large token selloffs have had a bearish effect on the token prices as the market is unable to handle the extra amount of tokens.
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One or two of FTX’s recent measures such as selling the WLD tokens at a lower price will have traders waiting for a drop in the market. Depending on the response from the market, this selloff may have a carry along to the value of WLD.
Impact and Outlook on WLD Price
Even if it is still uncertain whether the selloff will lead to a more drastic price drop, the number of tokens put up for sale is large enough to briefly pull the price of WLD down. Other researchers argue that if FTX is to sell the tokens at such deep discounts, it is likely to trigger massive selloff by the holders hence depressing the prices even more.
However, others have invited the view that the auction could offer long-term investing probability especially when the selloff is anticipated to be one-off. Merely, traders may wish to follow the auction and learn what sort of signal the market offers regarding the recovery.The adoption of the sale by market participants will also raise eyebrows especially on token price, token liquidity and overall token market sentiment.
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