The Surge of Worldcoinโs WLD Token and its Impact on Crypto Creditors
Worldcoinโs native token, WLD, has experienced a significant surge of 200% in the past week. This surge is likely to have positive implications for investors in Three Arrows Capital and FTX, as it may help buffer their crypto creditor payments. However, there is a possibility of sell pressure due to an upcoming token unlock.
Worldcoin Investors Benefit from the Surge
Two bankrupt crypto entities, Three Arrows Capital (3AC) and FTX, were early investors in Worldcoin and have received millions of WLD tokens. Here are the key details:
- Three Arrows Capital (3AC) participated in a $25 million funding round for Tools For Humanity, the company behind Worldcoin. The liquidator of 3AC, Teneo, currently holds 75 million WLD tokens valued at over $550 million. It is possible that they hold more WLD tokens in unidentified wallets.
- FTX, the crypto exchange founded by Sam Bankman-Fried, also invested in Worldcoin and received WLD tokens. Wallets associated with Bankman-Fried received $185 million worth of WLD tokens through an airdrop last year.
However, the influx of WLD tokens into the market may result in reduced gains for these investors due to potential sell-offs.
The Impact of Token Unlocks and Expansion Plans
Token Unlocks reports that $165 million worth of WLD tokens will enter circulation until February 26. This may lead to further sell pressure on the market.
In addition to these developments, here are some other noteworthy points:
- Worldcoin faced scrutiny from governments in Kenya and France regarding privacy concerns related to its protocol. However, the project is expanding in regions like Argentina, Singapore, and Chile.
- Over 200,000 Chileans have already scanned their eyes using Worldcoinโs Orb devices.
Hot Take: WLD Surge Provides Relief for Investors, But Token Unlock Brings Uncertainty
The recent surge in Worldcoinโs WLD token has undoubtedly brought relief to investors such as Three Arrows Capital and FTX. However, the upcoming token unlock introduces a level of uncertainty into the equation. Here are some key takeaways:
- The surge in WLDโs price is likely to benefit crypto creditors, potentially helping them with their payments.
- Investors may experience reduced gains due to potential sell pressure resulting from the token unlock.
- Worldcoinโs expansion plans and adoption in various regions indicate promising growth opportunities.
Overall, while the surge in Worldcoinโs token value brings positive news for investors, it also raises questions about the future market dynamics and the impact of token unlocks.
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