FTX Estate to Auction 22.3 Million Locked Worldcoin (WLD) Tokens

The FTX estate is set to auction 22.3 million locked Worldcoin (WLD) tokens, currently valued at approximately $37.7 million, at a significant discount. This sale is part of the estate's ongoing effort to recover funds for creditors.

Auction Details

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

The estate holds a total of 22.3 million WLD tokens, indicating that there will be no further auctions for these tokens. The tokens will unlock daily through 2028:
– 20,539 WLD tokens daily from Dec. 1, 2024, to July 24, 2026.
– 13,689 WLD tokens daily from July 25, 2026, to July 24, 2028.

Concerns About Lockup Periods

One source expressed concerns regarding the lengthy lockup periods for the WLD tokens.

Figure Markets' Involvement

Earlier this week, Mike Cagney, co-founder and CEO of Figure Markets, announced on X that the FTX estate is auctioning its WLD token position with a potential discount of around 75%. He mentioned that Figure Markets might establish a fund to participate in the WLD token auction, similar to its earlier participation in the FTX estate’s Solana (SOL) auction. However, Figure Markets ultimately chose not to bid on WLD tokens due to concerns over the token's limited float and estate expectations.

Previous Sales and Current Holdings

The FTX estate had previously sold SOL and Metaplex (MPLX) tokens and wrapped up the sale of its $7.5 billion stash of discounted Solana tokens in May, attracting interest from prominent investors like Pantera Capital. Currently, the estate holds roughly $594 million in remaining assets, with $541 million in the illiquid FTX's FTT token, which has been marked to zero by the estate.

_(with contribution from Tim Copeland)_

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