FTX Exchange is going to sell coins to pay off debts again. This time it is reported that it is expected to auction 22.3 million Worldcoin (WLD), which is currently worth about US$36.35 million. The discount may be as high as 75%.

The liquidation team of the bankrupt FTX exchange was revealed by foreign media yesterday (2) that it is preparing to auction 22.3 million Worldcoin (WLD) from FTX's bankruptcy assets on October 3, currently worth approximately US$36.35 million. The proceeds from the auction will be used to repay creditors and customers.

According to reports from The Block and Cointelegraph, insiders revealed that the discount range of the Worldcoin auction may be 40% to 75% lower than the current spot market price of WLD. At that time, WLD was worth about $1.69. Interested bidders must bid before 8 pm EST on October 3 (8 am Beijing time on October 4), and the minimum bid threshold is $2.5 million.

It is understood that a total of 22.3 million WLD tokens are held in the FTX bankruptcy estate, which indicates that there will be no further Worldcoin sales by FTX.

WLD falls below $1.6

After the news was exposed, along with the collapse of the crypto market, Worldcoin fell to a low of $1.55 today. At the time of writing, it was reported at $1.63, down about 4.4% in the past 24 hours and 21.5% in the past week, almost giving back the gains since late September. On the 26th of last month, WLD once reached $2.16.

Source: CoinGecko

4-year unlock period

Sources said that the tokens will be unlocked over a four-year period, with 20,539 WLD tokens unlocked every day from December 1, 2024 to July 24, 2026, and 13,689 WLD tokens unlocked every day from July 25, 2026 to July 24, 2028. Therefore, investors must be too worried that FTX's sale of tokens will cause a large market sell-off.

It is worth mentioning that FTX sold off its 41 million "locked SOL" twice this year, which caused dissatisfaction among creditors, but also attracted many institutions to bid for bargains. Two-thirds of the tokens were sold in the first round, with the price as low as US$64 (a discount of 66% based on the spot price of US$188 at the time), raising about US$1.9 billion in liquidity for FTX.

According to Arkham data, the FTX liquidation team appears to have sold most of the tokens in the bankruptcy estate and currently holds about $585 million in remaining assets. However, a large portion of these assets (about $533 million) are in FTX's native token FTT, which has very poor liquidity and may not be sold because the FTX bankruptcy estate marked its value to zero.

Whether FTX's repayment plan will be approved will be announced at the hearing on October 7

The repayment plan of the bankrupt cryptocurrency exchange FTX continues to move forward, and the final result is expected at the hearing on October 7. If the plan is approved by the court, the repayment process is expected to start within 60 days at the earliest. However, if the assets of FTX creditors are not stablecoins, they can only recover 10-25% of the value of their cryptocurrencies, because the bankruptcy plan is based on the cryptocurrency price at the time of FTX's bankruptcy application.