FTX Estate to Auction 22.3 Million Locked Worldcoin Tokens

The FTX estate is set to auction 22.3 million locked Worldcoin (WLD) tokens, currently valued at around $37.7 million, at a significant discount, according to three sources with direct knowledge of the matter as reported by The Block. This sale is part of the estate’s ongoing effort to recover funds for creditors.

Auction Details

Interested buyers must submit their bids for the WLD token sale by 8 PM ET Wednesday. Those parties will be notified by Thursday if their bids are accepted. The discount on the WLD tokens could range from 40% to 75% off the current spot market price of WLD, which is trading at approximately $1.69.

The FTX estate holds a total of 22.3 million WLD tokens, indicating that there will be no further auctions for these tokens.

Unlock Schedule

The WLD tokens will unlock daily through 2028. Specifically, 20,539 WLD tokens will unlock daily from Dec. 1, 2024, to July 24, 2026, and 13,689 WLD tokens will unlock daily from July 25, 2026, to July 24, 2028. One source, along with a separate fourth source, expressed concerns about the length of the lockup periods for the WLD tokens.

Community Insights

Earlier this week, Figure Markets co-founder and CEO Mike Cagney posted on X that the FTX estate is auctioning its WLD token position, mentioning it could be at a discount of around 75%. Cagney noted that Figure Markets might establish a fund to participate in the WLD token auction, similar to their involvement in the FTX estate’s Solana (SOL) auction earlier this year.

The FTX estate previously sold SOL and Metaplex (MPLX) tokens before moving on to WLD. In May, the estate wrapped up the sale of its $7.5 billion stash of discounted Solana tokens, which attracted interest from high-profile investors, including Pantera Capital.

Last month, according to The Block, several crypto funds, including Pantera Capital and ParaFi Capital, bought 62.6 million MPLX tokens from Wave Digital Assets, which were originally held by the FTX estate.

Remaining Assets

The FTX estate appears to have sold most of its tokens and now holds approximately $594 million in remaining assets, according to Arkham data. However, a significant portion of these assets, about $541 million, is in the form of FTX’s FTT token, which is highly illiquid and may not be sold as the estate has marked it to zero.

(with contributions from Tim Copeland)

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