Worldcoin is planning to increase the supply of its tokens by up to 19% in the next six months through private sales.
This increase in token circulation is expected to dilute the value of the existing tokens.
Worldcoin aims to sell the tokens at a price close to the current market price to minimize the negative impact on the price.
Despite the planned increase in supply, analysts believe Worldcoin remains bullish in the long term, as long as the price stays above a certain level.
A break above $6 could signal a price increase towards $14.23.
Increasing Token Circulation
In a recent blog post, Worldcoin revealed plans to gradually release between 0.5 million and 1.5 million $WLD tokens per week to select trading firms outside the US. Managed by World Assets, a company under the Worldcoin Foundation's umbrella, this initiative aims to inject approximately 36 million new tokens into the market over the span of six months.
At current market rates, this sell-off strategy is anticipated to yield around $197 million in total. World Assets intends to execute private placements for these WLD tokens over the course of six months, aiming to negotiate sales close to market prices to mitigate potential bearish impacts.
Impact on Worldcoin
The influx of 36 million additional tokens into circulation is expected to significantly affect the value of $WLD. With a current circulating supply of approximately 194 million out of a total supply of 10 billion tokens, the introduction of these new tokens may dilute the value of $WLD, given the relatively small percentage of circulating supply compared to the total.
Worldcoin Analysis and Forecast
Worldcoin's market capitalization currently stands at around $1 billion, positioning it as the 98th largest cryptocurrency by market cap. Despite the impending increase in token circulation, Worldcoin has shown resilience in its price trends, bouncing off ascending trendlines and indicating bullish sentiment in the long term.
Chart analysis suggests that $WLD $WLD pported by an ascending trendline, with significant resistance observed around $6. Should this level be breached, it may pave the way for further bullish momentum, potentially targeting a price point of $14.23.
Disclaimer
While the Voice of Crypto endeavors to provide accurate and timely information, readers are encouraged to conduct their own research and make informed financial decisions. Cryptocurrencies are volatile assets, and caution should be exercised when trading or investing in them.