On April 23, 2024, Worldcoin officially announced that it would sell WLD tokens to institutions at a price close to the market price, but the sales quantity was not announced. However, Bybit top trader DeFi^2 (@DefiSquared) revealed that the Worldcoin Foundation would sell an additional $200 million worth of tokens to trading companies. After the news was released, the price of WLD fell sharply, and some large investors began to charge WLD into the exchange to liquidate their positions. So what is the real situation of the WLD project selling tokens at present? The following will be analyzed through on-chain data.
Since the announcement was released, there have been multiple large transfers from the multi-signature address 0x59a of the wld project. Part of the transferred wld flowed into the multi-signature address 0xE79 controlled by another project party, and part of it crossed the chain and entered the OP.
Part 1 OTC Trading
On April 28, 2024, the multi-signature address 0x59a controlled by the project party transferred 8 million wld to the multi-signature address 0xE79 controlled by the project party, and then dispersed 3.62 million wld to several new addresses.
It can be observed that the address 0x44c2 received a wld transfer from the multi-signature address of the wld project party after receiving a USDC transfer from coinbase on May 3. Therefore, the transaction of this address is most likely completed in the form of OTC, and the transaction unit price is 4.78U, which is not much different from the price in the secondary market at that time. In other words, this OTC transaction is basically traded at the market price.
Subsequently, several similar transactions occurred at the address 0x44c2 in the following month, and USDC came from withdrawals from bitfinex and coinbase.
The 572wUSDC obtained from OTC transactions at this address were all transferred back to the multi-signature address 0x59a controlled by the wld project party. Currently, this address still holds 1.12w wld.
Among other addresses that received WLD dispersed by the project party, the WLD in some addresses did not move, but some addresses received USDC transfers from suspected Amber addresses.
In addition, in addition to receiving USDC obtained from OTC transactions, the multi-signature address 0x59a controlled by the project party has also received large USDC transfers from market makers wintermute, GSR, and suspected Amber addresses in the past month. Therefore, it is possible to doubt whether the project party address 0x59a will have related transactions with these market makers in the future after transferring this batch of WLD in a dispersed manner.
Eventually, part of the USDC obtained from these OTC transactions was transferred from the multi-signature address 0x59a controlled by the project party to the address tft.eth (0x94D), and then withdrawn through Circle.
Part 2 Airdrop Distribution
The project party controls a total of 40 million WLDs that cross the chain into OP at the multi-signature address 0x59a, of which 28 million flow into the contract address of the WLD airdrop through iris scanning, and the remaining 12 million WLDs flow into the subsidiary address of the Worldcoin Foundation. Currently, 4 million of these 12 million WLDs have also been transferred to the airdrop distribution address.
in conclusion:
From the on-chain traceability analysis above, it can be seen that this batch of OTC WLDs are not traded at a discount price. They are basically sold at the market price at that time. Institutions have already started to lose money, and this batch of OTC WLDs needs to be locked for 40 days.
And the above data also shows that the selling pressure of the airdrop is very large. Most of the tokens in the project party’s address are transferred to the contract address of the airdrop. If the subsequent price is lower, the institutional losses will be more serious.
The announcement clearly stated that the sale will last for 6 months. We can continue to track the subsequent OTC transactions between the WLD project address and institutions. If more institutions purchase WLD at market prices in the future, can it be considered that the institutions recognize WLD's low circulation and high market value and continue to be optimistic about future projects?