Prepare for success: the Worldcoin team plans to sell 1.5 million WLD tokens weekly for 6 months
Worldcoin (WLD) could see a significant downtrend in the coming weeks as the team plans to sell up to 1.5 million WLD tokens over the next six months, which could potentially cause huge selling pressure and impact the price of the token.
Details of the proposed token sale, WLDWorldcoin reported 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.
The token sale will be conducted through a private placement and is expected to last up to six months. As a result, up to 36 million WLD tokens could be sold under this agreement.
Notably, these tokens are not part of the current circulating supply, as Worldcoin stated that “the circulating supply of WLD will increase accordingly” as token sales progress.
This means that the circulating supply of Worldcoin could increase by 18.6%, reaching over 229 million WLD tokens after the completion of the private sale.
This development is undoubtedly of concern to WLD holders given the potential impact on cryptocurrency token price movements.
However, Worldcoin attempted to downplay the impact of this token sale, noting that the weekly sale of 500,000 to 1.5 million WLD tokens represented "less than 0.1-0.4% of current weekly trading volume."
Meanwhile, World Assets “may seek to include a 40-day lock-up period restricting the resale of WLD by trading companies,” Worldcoin noted.
This can also help reduce the high volatility that may result from an immediate sell-off by these trading companies.
