Worldcoin Announces Private Token Sale, Potentially Boosting Supply by 19%

Due to a series of private sales to non-US institutions, Worldcoin, a crypto-based digital identity project, will boost the supply of its WLD token by up to 19% in the coming six months. World Assets, a subsidiary of the Worldcoin Foundation in charge of token issuance, intends to sell up to 1.5 million WLD ($8.2 million) each week. This increase in supply represents 36 million new tokens, or 18.6% of the current circulating supply, potentially impacting the token's price.

Worldcoin to Expand Token Supply by 19% Through Private Sales

April 24, 2023 - World Assets, a subsidiary of the Worldcoin Foundation, has announced plans to increase the supply of its WLD token by up to 19% over the next six months through private sales to non-United States institutions.

In a blog post published on April 23, World Assets outlined the details of the planned token sales. The company intends to sell between 0.5 million and 1.5 million WLD tokens per week, totaling up to 36 million new tokens over the six-month period. This represents an approximate supply increase of 18.6% based on the current circulating supply of 193 million WLD tokens.

The private placements will be conducted with a select group of institutional trading firms operating outside of the United States. World Assets stated that it will negotiate prices with individual firms to minimize potential price impact on the WLD token.

At current market prices, the private sales represent a potential value of approximately $197 million. With a market capitalization of $1 billion, Worldcoin's fully diluted value (FDV) would reach $54.5 billion if all tokens were in circulation, making it the sixth-largest cryptocurrency by FDV.

Worldcoin is a crypto-based digital identity project founded by OpenAI CEO Sam Altman and others. The project aims to establish a universal identity system using retinal scans and distribute a basic income in the form of its WLD token.

When users register with Worldcoin's "World App," they scan their retinas at designated "Orbs" and receive a payment of around 25 WLD tokens (currently valued at approximately $137).

Following its launch in July 2023, Worldcoin experienced a surge in value, increasing by 435% from its launch price of $2.17. However, its price has since declined by over 53% from its peak of $11.74 in March 2023, currently trading at $5.49.

The planned private sales have raised concerns among some observers who believe it could dilute the value of existing WLD tokens. However, World Assets has stated that it will take steps to minimize any potential price impact by negotiating prices closely with the participating trading firms.