The World Foundation, the organization behind the digital identity project Worldcoin (WLD), has completed an over-the-counter (OTC) token sale of $65 million.
According to a statement from March 28, World Assets Ltd, a subsidiary of the foundation, carried out block trades last week with four private parties. The transactions, the first settlements of which began on March 20, were executed at an average price of $0.2719 per token.
World Foundation sold WLD tokens to finance Orbs production.
The foundation indicated that the raised funds are used for the main operational costs. This includes extensive research and development, expanding the ecosystem, and further production of their own iris-scanning hardware, called 'Orbs'.
To limit direct impact on the secondary market, WLD tokens worth $25 million that were sold are locked for six months. Therefore, these tokens cannot be circulated until the end of September.
However, blockchain analysis shows that this large capital round is not an isolated case.
Data from Lookonchain shows a persistent pattern of structural sales by World-affiliated parties. Over the past two years, the project has systematically sold WLD tokens through well-known market makers like Flow Traders and Wintermute, resulting in a constant extra supply on the market.
This ongoing increase in supply comes at a difficult time for the asset. The last OTC sale coincided with a drop in WLD to an all-time low, after which the price slightly recovered to the current level of about $0.27.
Despite this slight recovery, the token remains heavily devalued. The price is more than 97% lower than the peak of $11.72 in March 2024.
The market situation of the project is also complicated by a rapidly deteriorating regulatory climate.
The central narrative of Worldcoin is to provide a 'proof of humanness' network to counter the growth of smart AI bots online.
Yet, these plans have hardly reassured the reluctant regulators. As a result, regulators worldwide are struggling and continuously expressing concerns about the large-scale collection and storage of biometric data.
This has led the project to face significant legal challenges, and privacy investigations are ongoing in several countries.