• FTX plans to auction 22.3 million locked Worldcoin tokens as part of creditor repayment efforts.

• WLD price dropped by 2%, with a further fall likely due to the steep discount on the tokens.

• The token auction offers buyers a potential discount of up to 75%, unlocking gradually until 2028.

The price of Worldcoin (WLD) dropped by over 2% as the FTX estate announced its plan to auction 22.3 million locked WLD tokens at a significant discount. The auction is part of the estate’s strategy to repay creditors, with bids expected by midnight UTC on Wednesday and notifications of accepted bids due on Thursday. 

The sale is projected to offer a discount ranging between 40% and 75% off the current WLD price, which hovers around $1.69. 

FTX’s auction of the 22.3 million Worldcoin tokens, valued at roughly $37.7 million, comes amid ongoing recovery efforts by the estate following its bankruptcy. The tokens will be gradually unlocked until 2028, with 20,539 tokens unlocking daily from December 2024 to July 2026. A second lot of 13,689 tokens will unlock from July 2026 to July 2028. 

This news has further pressured WLD, with the token recording a weekly drop of over 20%. According to Mike Cagney, co-founder and CEO of Figure Markets, the FTX estate is contemplating a steep discount of over 75% for the tokens, which could attract interest from funds like Figure Markets itself, similar to its earlier purchase of Solana tokens from the estate.

Earlier this year, the FTX estate sold off its holdings of Solana and Metaplex tokens as part of its efforts to recover funds for creditors. In May, it successfully completed a $7.5 billion sale of its Solana tokens to investors, including Pantera Capital.

The sale of Worldcoin tokens comes as the project continues to expand its verification system, recently extending its World ID services to Poland. Despite the recent price drop, there remains optimism about the future of WLD, with projections suggesting the token price may rise in 2025, potentially reaching $4.29.