- Worldcoin will increase the supply of its WLD token by up to 19% in the next 6 months
- Worldcoin will sell up to $200 million worth of WLD tokens (around 15 million WLD per week) to a “select group” of trading firms outside the U.S.
- The increase of up to 15 million WLD tokens per week for 6 months equates to around 360 million new WLD tokens hitting the market, worth around $197 million at current prices
Worldcoin, the digital identity and universal basic income project, has announced plans to significantly increase the supply of its native token WLD over the next 6 months. This move aims to raise additional capital but could put downward pressure on the token’s price.
Details of the Supply Increase
Worldcoin will sell up to 15 million WLD tokens, worth around $82 million, to select trading firms outside the US each week for 6 months. This will increase the circulating supply by up to 186% within this timeframe. The sales will be structured as private placements close to prevailing market prices of WLD.
The Impact on Worldcoin
Worldcoin currently has a market capitalization of $1 billion based on the circulating supply of 193 million WLD. However, the fully diluted valuation is $545 billion if all tokens were in circulation. This supply increase to institutions will provide funding for Worldcoin’s operations.
Price Action and Market Response
After launching in July 2022, WLD soared over 400% to an all-time high of $11.74 in March 2023. However, it has since fallen 53% amid the recent crypto downturn. This new supply could weigh further on the token price unless demand rises to match it. The market response will indicate if investors view this as positive for Worldcoin’s growth or negative for WLD’s value.
Looking Ahead
As a high-profile crypto project headed by leaders like Sam Altman and Alex Blania, Worldcoin’s moves are closely watched. While the supply increase carries risk of decline, it also provides capital to fund ambitious plans around digital identity and universal basic income. The coming months will be crucial for gauging whether Worldcoin can balance expansion with maintaining token value.
