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Highlights
- Worldcoin intends to augment WLD token supply by 19% in the next six months.
- Private sales through World Assets Ltd. aim to inject approximately 36 million new tokens into circulation.
- The strategic move seeks to enhance liquidity, deepen market penetration, and unlock latent value within the ecosystem.
The groundbreaking digital identity initiative, Worldcoin, has announced intentions to notably augment the circulation of its core token, WLD, by up to 19% within the upcoming half-year period. This strategic maneuver encompasses private sales to institutional trading entities beyond the United States, overseen by World Assets Ltd., a branch of the esteemed Worldcoin Foundation.
Detailed Overview of Worldcoin’s Supply Increase
In an official announcement on April 23, Worldcoin disclosed its intention to augment the circulating supply of WLD through a series of private placements. World Assets Ltd. will oversee the sale of up to 1.5 million WLD tokens per week, with a total value exceeding $8.2 million. This incremental supply injection is projected to introduce approximately 36 million new tokens into circulation over the designated six-month period, constituting a substantial 18.6% expansion of the token’s total available supply.
The rationale behind this strategic maneuver is multifaceted. By leveraging private sales to institutional trading firms, Worldcoin aims to fortify the liquidity profile of the WLD token and foster deeper market penetration. Notably, negotiations with these firms will prioritize execution at prevailing market prices to mitigate potential price distortion and ensure equitable access for all stakeholders.
Despite Worldcoin’s current market capitalization of $1 billion, it is essential to recognize the disparity with its fully diluted value (FDV) of $54.5 billion, underscoring the significance of this supply augmentation in unlocking latent value within the ecosystem.
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World Assets Ltd. Gears Up for Outflows
Simultaneously, World Assets Ltd., in tandem with the broader strategic initiative, is poised to initiate controlled outflows from its treasury reserves in anticipation of heightened demand for orb-verified World IDs and the burgeoning Worldcoin network. The forthcoming token sales, slated to unfold over the course of six months, will be meticulously orchestrated through private placements targeting a select cohort of institutional trading firms domiciled outside the United States.
Crucially, these transactions will be underpinned by robust measures designed to preclude the inadvertent repatriation of WLD tokens into the United States, thereby safeguarding regulatory compliance and preserving market integrity.
To this end, stringent restrictions will be imposed on the resale of WLD tokens to US persons or on digital asset trading platforms accessible to US residents. Furthermore, World Assets Ltd. may explore the implementation of a 40-day lock-up period, contingent upon prevailing legal and commercial considerations, to fortify the stability of the market and instill investor confidence.
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