Worldcoin Will Unlock 2 Million WLD Tokens Daily From July 24

07/17/2024 13:27
Worldcoin Will Unlock 2 Million WLD Tokens Daily From July 24

Tools for Humanity extends the Worldcoin (WLD) token lock-up, releasing 2 million tokens daily from July 24, 2024

Tools for Humanity (TFH), the developer behind Worldcoin, has extended the lock-up period for WLD tokens allocated to team members and investors. This strategic decision has altered the token distribution timeline, with 2 million tokens set to be released daily beginning July 24, 2024.

Originally, the schedule projected the daily release of 3.3 million tokens.

Worldcoin Soars Over 23%

The revised strategy aims to lessen market saturation and support the token’s value. Consequently, this adjustment is designed to manage the influx of tokens into the market, allowing a more measured increase in circulating supply.

Amidst this development, WLD’s price increased 23% within the last 24 hours, signaling investor optimism. As of writing, WLD is trading at $2.84, with a market capitalization of $784.9 million.

Read more: Worldcoin (WLD) Price Prediction 2024/2025/2030

Worldcoin Price Performance
Worldcoin Price Performance. Source: BeInCrypto

However, the potential for selling pressure persists as the increased supply might incentivize early investors to sell.

“Looks like WLD is getting shorted hard after the news that token unlocks will be spread out over a longer time period,” HumaCapital said.

The lock-up period extension—from three to five years for 80% of the tokens—aims to bolster the Worldcoin ecosystem’s stability. Now, the unlocking process will span four years, concluding in July 2028, with the vesting schedule extending to 2029.

In an exclusive report shared with BeInCrypto, Vincent Maliepaard, Marketing Director at IntoTheBlock, emphasizes the significance of unlock schedules.

“Token unlocks, whether linear or cliff, play a crucial role in asset prices. Linear unlocks tend to diffuse market impact over time, while cliff unlocks can cause abrupt shifts. By closely monitoring unlock schedules, investors can better understand growth potential and adjust their strategies accordingly,” Maliepaard said.

Worldcoin’s tokenomics have faced scrutiny, particularly concerning its low float ratio. A CoinGecko report highlights that among the top 300 cryptocurrencies by market capitalization, Worldcoin exhibits the lowest float ratio at 0.02. This low ratio suggests limited tokens are available in circulation, potentially leading to heightened volatility due to future token unlocks.

Read more: How to Buy Worldcoin (WLD) and Everything You Need to Know

Nonetheless, Worldcoin continues to attract users to its network. Currently, over 6 million people hold an orb-verified World ID. This digital passport authenticates a user’s humanness and facilitates access to the network.

The allocation of WLD tokens to verified World ID holders has not changed, with over 211 million tokens claimed to date. This accounts for over 77% of the 275 million WLD in circulation.

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