The World Foundation, the organization behind the digital identity initiative Worldcoin, completed a $65 million over-the-counter sale of its WLD tokens. This substantial transaction was carried out via World Assets Ltd, a subsidiary, engaging four private counterparties. Settlement for these token trades began on March 20, with the average price per WLD set at $0.2719.
Worldcoin token sale used to finance iris-scanning device production
Created to develop privacy-preserving global identity solutions, the World Foundation has positioned Worldcoin as a protocol aiming to establish a “proof of humanness” network in the digital world. The organization’s work also includes manufacturing proprietary iris-scanning devices called Orbs, which are central to the project’s user verification process.
According to World Foundation, the entire capital from this token sale will be channeled into core operations. Primary areas include research and development, expansion of the Worldcoin ecosystem, and continued production of Orb devices. This strategic allocation seeks to reinforce the project’s infrastructure as it scales globally.
World Foundation emphasized that a portion of the newly sold tokens—worth $25 million—will remain locked for six months, thus delaying their entry into the broader market until at least late September.
The six-month lockup on a significant share of these tokens was designed to avoid sudden impacts on the secondary market, potentially stabilizing demand and supply during the lockup period.
Pattern of ongoing WLD token sales and market impact
Blockchain tracking firms pointed out that this $65 million sale was not Worldcoin’s first major token divestment. Analysis by Lookonchain indicates a pattern over the past two years, with Worldcoin entities regularly distributing tokens to the market, often through notable market makers like Flow Traders and Wintermute.
These ongoing token releases have created persistent downward pressure on WLD prices. After this latest sale, the token price briefly hit an all-time low before rebounding to near $0.27, remaining significantly below the March 2024 peak of $11.72. Despite minor recoveries, WLD continues to trade at values over 97% below its historic high.
Worldcoin’s declining token performance coincides with mounting regulatory attention. International authorities have heightened their scrutiny, focusing on concerns about biometric information and privacy risks tied to the extensive iris-scanning required by the project.
The controversy around biometric data storage has resulted in several privacy investigations across various countries. Regulatory bodies have yet to find Worldcoin’s data protection assurances sufficient given the scale and sensitivity of personal data involved.
While the World Foundation continues investing in its core technology and onboarding, the combination of ongoing divestments and a challenging regulatory environment has kept market pressure high for WLD holders.
