Worldcoin, a trailblazer in digital identity technology, has announced a significant expansion of its WLD token's supply by 19% over the next six months. This expansion is facilitated through private sales targeted at institutional trading firms located outside the U.S. and will be managed by World Assets Ltd., a subsidiary of the Worldcoin Foundation.
On April 23, Worldcoin detailed its plan to increase WLD's circulating supply via private placements. World Assets Ltd. is set to oversee weekly sales up to 1.5 million WLD tokens, totaling over $8.2 million in value. This will result in approximately 36 million new tokens entering circulation, marking an 18.6% growth in the total available supply of the token.
The strategy behind the expansion is complex and aims to enhance the liquidity and market penetration of the WLD token. The sales will be conducted with a focus on achieving market price parity to avoid potential price distortions and to maintain fairness for all market participants.
Despite Worldcoin's substantial market capitalization of $1 billion, there exists a notable disparity when compared to its fully diluted value of $54.5 billion. This indicates significant untapped potential within the ecosystem that the supply increase could help realize.
In conjunction with this initiative, World Assets Ltd. is preparing for controlled outflows from its treasury in response to an expected rise in demand for Worldcoin's orb-verified World IDs and the expanding network. The token sales, which are scheduled over a six-month period, will be specifically aimed at institutional trading firms outside the U.S.
Important measures will be taken to ensure that these WLD tokens do not inadvertently re-enter the U.S. market, thereby maintaining compliance with regulatory standards and preserving market integrity. There will be strict limitations on the resale of WLD tokens to U.S. persons or on trading platforms accessible within the U.S. Additionally, World Assets Ltd. may consider a 40-day lock-up period depending on legal and commercial factors to further stabilize the market and boost investor confidence.
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