Brace for Impact: Worldcoin Team Plans to Sell 1.5 Million WLD Tokens Weekly for Six Months
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Worldcoin (WLD) could face 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, potentially causing massive selling pressure and impacting the token's price.
Details on the Proposed WLD Token Sale
Worldcoin revealed 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. This token sale will be conducted through private placements and is expected to last up to six months.
As a result, up to 36 million WLD tokens could be sold under this arrangement. Notably, these tokens are not part of the current circulating supply, as Worldcoin stated that "the circulating supply of WLD will accordingly increase" as token sales progress. This means that the circulating supply of Worldcoin could see an increase of 18.6%, reaching over 229 million WLD tokens once the private sale is complete.
This development is undoubtedly a concern for WLD holders, given the potential impact on the cryptocurrency token's price movement. However, Worldcoin has attempted to downplay the effect of this token sale, noting that a weekly sale of between 500,000 and 1.5 million WLD tokens represents "less than 0.1% to 0.4% of the current weekly trading volume."
Meanwhile, World Assets "may seek to include a 40-day lock-up period restricting the resale of WLD by the trading companies," Worldcoin remarked. This could also help reduce the high volatility that might result from an immediate sell-off by these trading companies.
