Worldcoin is in decline as FTX plans to auction locked WLD tokens

• The FTX estate will auction the locked WLD tokens later in the week to raise funds for the lenders.
• The company currently holds 22.3 million WLD tokens locked up, valued at $37 million.
• WLD is down over 6% as it prepares to unlock over $300 million.

Worldcoin (WLD) fell over 6% on Wednesday following news of FTX estate’s plan to sell its WLD holdings this week. The sale will be by auction to raise funds for its creditors.

FTX is set to sell nearly $38 million worth of locked WLD tokens

In an attempt to settle the rest of its creditors, the ownership of FTX plans to sell the blocked Worldcoin tokens later this week through an auction. In an X post on Monday, Figure’s CEO said the auction will run this week with a “75%’ish” discount.

FTX currently holds 22.3 million WLD tokens locked up worth nearly $37 million, with which it plans to raise funds for its lenders. Interested bidders must also apply with their bids within a limited period as the company does not show any interest in future auctions for this token. The bloc said two of its sources also confirmed the news.

Earlier this year, the FTX estate sold 1.8 million Solana (SOL) tokens, which raised approximately $232 million in an auction that ended on April 25. Bids for these locked tokens ranged from $85 to $110 each, with successful bids settling around $95.

WLD is down 6% in the last 24 hours and could continue to fall following the potential FTX token auction.

Additionally, investors need to be on the lookout for a potential WLD supply shock in the coming weeks. Worldcoin will experience an unlock of $336 million worth of WLD tokens throughout the month of October.

Worldcoin’s unlock program was originally scheduled to end in 2026, but was pushed back by two more years. The identity-based project will witness the daily unlocking of 2 million WLD tokens until July 2028, after which 80% of its circulating tokens will be released.