Worldcoin Announces Token Supply Expansion, Aims for Minimal Market Impact

Worldcoin plans to increase the supply of WLD tokens by up to 19% over the next six months through private sales to institutions outside the US. The move aims to limit the potential impact on the token's price, as World Assets, responsible for issuing tokens, will sell up to 1.5 million WLD weekly. Worldcoin will work with trading companies to conduct private placements near prevailing WLD market prices.

Worldcoin Announces Token Supply Increase, Aiming for Minimal Market Impact

In a strategic move to expand its token ecosystem, Worldcoin has announced plans to increase the supply of its WLD tokens by up to 19% over the next six months. The initiative, led by renowned investor Sam Altman, involves private sales to institutional entities outside the United States.

Through a series of carefully managed private placements, World Assets, a division of the Worldcoin Foundation responsible for token issuance, will release up to 1.5 million WLD tokens weekly, with an estimated value of $8.2 million. This gradual increase in token supply will align with World Assets' projected weekly sales volume.

Mitigating Potential Price Fluctuations

To minimize the potential impact on the token's market price, Worldcoin emphasizes its commitment to conducting private placements at prices close to prevailing market rates. The company will collaborate closely with select trading firms, particularly those involved in arbitrage activities, to ensure the released tokens are absorbed by the market without significant price volatility.

Long-Term Valuation Prospects

Despite the planned token supply expansion, Worldcoin maintains a strong valuation outlook. With a current market capitalization of approximately $1 billion, the company's fully diluted value (FDV) stands at $54.5 billion. This suggests ample room for growth as the token supply increases over time.

User Verification and Identity Proof

Worldcoin's unique user verification system, known as the "World App," utilizes retina scans performed at "Orbs" to establish user identities. In exchange for sharing their biometric data, users receive approximately 25 WLD tokens. This novel approach enables Worldcoin to distribute tokens widely and foster a global community of verified users.

Cryptocurrency Market Insights

In parallel with Worldcoin's token supply announcement, the cryptocurrency market continues to witness significant developments. U.S. prosecutors have reportedly requested a 36-month jail sentence for Binance founder Changpeng Zhao (CZ) in connection with the ongoing probe into the company's activities. The evolving regulatory landscape and legal challenges faced by major crypto players underscore the need for industry transparency and accountability.