Bittime – The price of Worldcoin (WLD) is threatened with a significant decline in the coming weeks. The Worldcoin development team plans to sell as many as 1.5 million WLD tokens every week for the next six months.
It is feared that this plan will cause major selling pressure and hurt the price of the WLD token.
WLD Token Sale Plan Details
Through its official blog post, Worldcoin announced that World Assets (a subsidiary of the Worldcoin Foundation ) will sell between 500,000 and 1.5 million WLD tokens per week to a group of institutional trading companies outside the United States.
The token sale will be conducted via private placement and is expected to last up to six months.
With this scheme, as many as 36 million WLD tokens could potentially be sold. What is important to note is that these tokens are not included in the total supply currently circulating.
Worldcoin stated that “the circulating supply of WLD will increase by” the ongoing token sale. This means the circulating supply of WLD could increase by 18.6% to over 229 million WLD tokens once the private sale is completed.
This token sale plan is of course a big concern for WLD holders, considering the potential impact on token prices. However, Worldcoin tried to downplay the negative effects of the sale.
They stated that weekly sales of between 500,000 to 1.5 million WLD tokens represent “less than 0.1% to 0.4% of current weekly trading volume.”
Additionally, Worldcoin mentioned that World Assets "may implement a 40-day lockup period that limits WLD resales by trading firms."
This step is expected to reduce the high volatility that may arise as a result of direct selling by these companies.
Check Today's Crypto Market:
Worldcoin Ecosystem
WLD is the native token of Worldcoin, a project focused on human digital verification. Users in the Worldcoin ecosystem are verified through a device called an “Orb”.
Since its launch last year, the project co-founded by OpenAI CEO Sam Altman has attracted criticism. Many parties, including Ethereum co-founder Vitalik Buterin, have questioned Worldcoin's privacy and legality issues.
Authorities in several countries have investigated the project because they believe Worldcoin's data collection methods may have violated certain privacy laws.
NewsBTC also recently reported that Worldcoin faces a potential fine of $1.2 million in Argentina for violating the country's National Consumer Protection Law.
Despite facing intense scrutiny from regulators, the Worldcoin team still seems intent on expansion.
In their blog post, they hinted that the proceeds from this token sale will be used to meet "the growing demand for Orb-verified World IDs around the world."
Also Read: Worldcoin (WLD) Acquires Crypto Wallet Provider Ottr Finance
Analysis of the Impact of WLD Token Sales on Investors
Worldcoin's planned WLD token sale could impact investors in several ways.
1. Potential Price Reduction
An increase in the circulating supply of WLD by 18.6% due to the sale of this token could cause the price of WLD to fall. This is due to high selling pressure from newly circulating tokens.
2. Long-Term Uncertainty
The lack of clear information regarding the selling price of WLD tokens and how long the 40-day locking period will be can cause uncertainty for investors.
This uncertainty may cause investors to choose to sell their tokens early to avoid potential losses.
3. Tarnished Worldcoin's reputation
The controversies surrounding Worldcoin, such as privacy violations and fines in Argentina, could be exacerbated by the planned token sale. Investors may question the credibility of the development team and the future of the Worldcoin project.
Appeal for WLD Investors
WLD investors need to pay close attention to this latest development and consider several things before making a decision.
1. Research and Analysis
Conduct in-depth research and analysis to understand the potential impact of selling WLD tokens on prices. Follow the latest news regarding Worldcoin and crypto-related regulations.
2. Investment Strategy
Implement a smart investment strategy. Don't invest funds that exceed your financial capabilities and don't get hung up on momentary trends. Diversify your investment portfolio by investing in different types of crypto.
3. Sell or Hold
The decision to sell or hold WLD tokens depends on your financial situation, risk tolerance, and your confidence in the future of Worldcoin. If you are in doubt, consult a professional financial advisor.
Also Read How To Buy Crypto:
Conclusion
The planned sale of WLD tokens in large quantities could trigger a decline in the price of WLD. Investors need to be alert and do research before making investment decisions. Always remember, that crypto investments involve high risks and large price fluctuations.
How to Buy Worldcoin (WLD) on Bittime
You can buy and sell Worldcoin (WLD) easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Worldcoin (WLD) is available on Bittime with the market pair WLD/IDR. To be able to buy WLD IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Worldcoin (WLD) on Bittime.
Monitor price chart movements of Worldcoin (WLD), Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
Explore the Potential of Worldcoin (WLD): WLD Price Analysis and Prediction, Ready to Skyrocket?
WLD Price Prediction 2024-2030
Worldcoin Meets with Malaysian Government, Discusses Privacy Issues
Hedera (HBAR) Rises and Falls Drastically Due to Misunderstanding of BlackRock Report
DISCLAIMER: This article is informational and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.