FTX will auction Worldcoin project tokens at up to 75% discount

The coins are locked and valued at $38 million at the current exchange rate

03.10.2024 - 10:05

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What’s new? The managers of the bankrupt crypto exchange FTX auctioned 22,3 million native tokens of Sam Altman’s Worldcoin (WLD) project at a 40-75% discount. At the current exchange rate, the coins are valued at about $38 million, with all of them being locked. The sale is being held to refund affected customers of the exchange.

Material by The Block

What else is known? The auction is being held in an accelerated mode and participants will be notified as early as October 3 if their bids are accepted. The FTX team has decided to simultaneously sell off all WLD tokens stored in the exchange’s accounts.

According to the plan of the Worldcoin team, WLD tokens will be gradually removed from the blockchain until 2028 daily. From December 1, 2024, to July 24, 2026, 20 539 coins will be unlocked each day, and from July 25, 2026, to July 24, 2028, 13 689 coins will be unlocked each day.

Worldcoin team unlocks 2,38 billion native tokens over four years

The coins are intended for investors and employees of the developer company

Previously, Figure Markets co-founder and CEO Mike Cagney allowed the possibility that the firm could set up a fund to participate in the WLD auction. Figure Markets did the same when FTX sold off its Solana (SOL) blockchain native tokens in early 2024

However, a source later told The Block that the company backed out of the WLD auction due to the limited amount of coins in circulation and other concerns about the project.

In May, FTX completed a $7,5 billion discounted sale of SOL, which attracted interest from large investors including Pantera Capital. Last month, several crypto funds, including Pantera and ParaFi Capital, bought 62,6 million Metaplex (MPLX) tokens from Wave Digital Assets, which originally owned FTX.

Korea’s regulator fined Worldcoin $830 000 for data collection violations

Officials allowed the project to continue operating in the country provided the violations were corrected

According to blockchain analytics platform Arkham Intelligence, FTX has already sold most of its tokens and owns about $594 million in assets. Of that, about $541 million is represented by the FTX (FTT) exchange token, which is highly illiquid.

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