Worldcoin (WLD), the digital identity project, has announced plans to increase the supply of its WLD token by up to 19%.
Worldcoin (WLD), the digital identity project, has announced plans to increase the supply of its WLD token by up to 19% in the next six months through private sales to institutions outside of the United States. World Assets, a subsidiary of the Worldcoin Foundation responsible for token issuance, will conduct weekly private placements of up to 1.5 million WLD tokens, equivalent to approximately $8.2 million, to select institutional trading firms.
According to Worldcoin's recent blog post, World Assets anticipates selling an average of 0.5 million to 1.5 million WLD tokens per week, resulting in a corresponding increase in the circulating supply of the token. This six-month increase could introduce 36 million new tokens to the market, valued at around $197 million, and contribute to an 18.6% expansion of the total available supply. To minimize potential price impact on the token, Worldcoin intends to negotiate with individual trading firms, aiming to execute private placements at or close to prevailing market prices for WLD.
Worldcoin, co-founded by OpenAI CEO Sam Altman, offers a crypto-based digital identity solution aimed at addressing identity challenges arising from advancements in artificial intelligence. Users register their identity through Worldcoin's "World App" by scanning their retinas using specialized machines called "Orbs." In return for their biometric data, users receive approximately 25 Worldcoin tokens, valued at around $137.
Worldcoin currently boasts a market capitalization of $1 billion, but its fully diluted value (FDV), which represents the total value if all tokens were in circulation, stands at $54.5 billion, making it the sixth-largest cryptocurrency by FDV. Worldcoin experienced significant growth, surging almost 400% from the start of February hit an all-time high of $11.82. However, its price has since declined by over 54% and currently trades at $5.45.
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