FTX Estate to Auction 22.3 Million Locked Worldcoin Tokens at Significant Discount

• FTX’s estate has announced the auction of 22.3 million locked Worldcoin (WLD) tokens at a substantial discount, valued at around $37.7 million, according to sources familiar with the matter.
• Potential buyers are required to submit their bids by 8 PM Eastern Time on Wednesday, with winners to be notified the following day. The discount range for the tokens is estimated to be between 40% and 75% off the current market price, where WLD is trading at approximately $1.69.
• FTX’s estate holds 22.3 million WLD tokens in total, suggesting this will be the only auction for these assets. The tokens are set to unlock daily until 2028.

FTX’s estate auctions 22.3 million Worldcoin tokens at a significant discount, leveraging efforts to recover funds for creditors, highlighting the ongoing complexities in the crypto market.

FTX Estate’s Strategic Move to Auction Worldcoin Tokens

The FTX estate is taking strategic steps to recover funds for its creditors by auctioning 22.3 million locked Worldcoin (WLD) tokens. These tokens are currently valued at approximately $37.7 million. The auction has attracted significant interest within the crypto community, with potential buyers required to place their bids by Wednesday evening.

Details of the Worldcoin Token Auction

The auction offers a discount on the WLD tokens, estimated to fall between 40% and 75% of the current market price. Given the current trading price of about $1.69 for WLD, this discount range is expected to attract a diverse pool of interested buyers. Winners will be notified on Thursday, following the bid submission deadline.

Unlocking Schedule and Concerns

FTX’s entire holding of 22.3 million WLD tokens is scheduled to unlock daily until 2028. Specifically, from December 1, 2024, to July 24, 2026, 20,539 WLD tokens will unlock daily. From July 25, 2026, to July 24, 2028, the daily unlock rate will be 13,689 tokens. Some sources have expressed concerns regarding the prolonged lockup period, which could impact the tokens’ market liquidity and value.

Previous Sales and Market Implications

FTX’s estate has been actively involved in the sale of other crypto assets prior to its focus on WLD tokens. Earlier this year, the estate completed a $75 million sale of Solana (SOL) tokens at a discount, which garnered interest from prominent investors such as Pantera Capital. Additionally, the estate sold 62.6 million Metaplex (MPLX) tokens to various crypto funds, further demonstrating their strategy to liquidate assets to recover funds for creditors.

Industry Reactions and Future Outlook

Mike Cagney, co-founder and CEO of Figure Markets, stated on social media platform X that FTX’s estate is moving forward with the auction and mentioned that the discount might be around 75%. He also noted that Figure Markets might establish a fund to participate in the auction, similar to their involvement in previous FTX asset auctions. The reactions from industry insiders highlight the significance of this auction and its potential impact on the crypto market.

Conclusion

FTX’s estate’s decision to auction its Worldcoin (WLD) tokens marks a significant move in their ongoing efforts to recover funds for creditors. The auction’s outcome, and the tokens’ subsequent unlocking schedule, will likely influence market perceptions and valuations. As strategic asset liquidation continues, the crypto community remains attentive to the implications of these sales on broader market dynamics.