The World Foundation, which supports the Worldcoin (WLD) digital identity project, has completed an OTC coin sale worth 65 million USD.
According to a statement on March 28, World Assets Ltd, a subsidiary of the foundation, has conducted block trades with four private counterparties over the past week. These transactions, which had their first settlement since March 20, had an average selling price of 0.2719 USD per coin.
The World Foundation sells WLD tokens to fund the production of Orbs.
The Foundation states that the funds raised from this off-exchange sale will be used for core operational expenses, such as intensive research and development, ecosystem expansion, and the production of the project's specific iris-scanning hardware, known as 'Orbs' going forward.
To immediately alleviate the impact in the secondary market, the sold WLD coins worth 25 million USD will have a six-month circulation ban, preventing these coins from entering the market until the end of September.
However, blockchain data analysis shows that this major fundraising event is not a one-time occurrence.
Data tracked by Lookonchain reveals a pattern of continuous dilution by entities associated with World over the past two years. The project has been gradually releasing WLD tokens through major market makers like Flow Traders and Wintermute systematically, resulting in ongoing selling pressure in the market.
Such continuous expansion of coin volume occurs at a time when assets are fragile, with the latest OTC sale happening as WLD fell to an all-time low, before recovering slightly to around 0.27 USD.
Although there has been a slight recovery, this coin remains at a severely depressed level, trading below its peak of 11.72 USD in March 2024 by more than 97%
The market challenges of this project are further complicated as the regulatory environment is rapidly deteriorating.
The main story of Worldcoin focuses on building a 'proof of humanity' network to cope with the increasing growth of advanced online AI bots.
However, this position has yet to instill confidence in the cautious regulators. Therefore, regulators worldwide continue to express concerns about the storage and management of biometric data on a large scale.
As a result, the project continues to face severe legal challenges and ongoing privacy scrutiny in various international jurisdictions.