Worldcoin is planning to increase the supply of its tokens by up to 19% in the next six months through private sales.
This increase in token circulation is expected to dilute the value of the existing tokens.
Worldcoin aims to sell the tokens at a price close to the current market price to minimize the negative impact on the price.
Despite the planned increase in supply, analysts believe Worldcoin remains bullish in the long term, as long as the price stays above a certain level.
A break above $6 could signal a price increase towards $14.23.
Worldcoin, the controversial human identity project enjoyed quite the hype and price action in the first few months of its launch.
Amid the current choppiness of the entire crypto market, however, the next stage of the Worldcoin project’s growth is a plan to increase the supply of $WLD by up to 19% in the next six months.
This move comes as part of a private sale initiative, targeting institutions outside the US, and will very well affect the price of $WLD.
How will $WLD react to this? Are we about to see some major price action on the cryptocurrency in the next six months?
According to a recent press release via a blog post, Worldcoin mentioned plans to sell anywhere between 0.5 million and 1.5 million $WLD tokens every single week, to specific trading firms outside the US.
This sell-off initiative, which is managed by a company called World Assets (which is also under the Worldcoin Foundation’s umbrella), is now gearing up to pump approximately 36 million new tokens into the market over these six months.
In other news, at current prices, this sell-off is expected to come in at a staggering $197 million.
“Specifically, World Assets plans to gradually sell WLD tokens through private placements […].
These private placements of WLD will take place for up to 6 months [..].
At current market conditions, World Assets expects to sell between 0.5M and 1.5M WLD per week on average […].”
Moreover, the private sales to these trading firms will also cause the circulating supply of $WLD (which is currently 193 million) to skyrocket by around 18.6%. In detail, Worldcoin aims to negotiate the sales of these tokens not at current market prices, but close—in a bid to minimize the bearish impact of this sell-off.
According to data from CoinMarketCap, Worldcoin currently has a market cap of around $1 billion, making it the 98th largest cryptocurrency by market cap.
Worldcoin’s tokenomics
The interesting thing about the ongoing sale is that despite having a total supply of around 10 billion WLD tokens, the circulating supply is only about 194 million tokens.
This means that only less than 2% of Worldcoin’s total supply is circulating at the moment.
It only stands as the reason that an extra 36 million tokens entering the market might further dilute the value of $WLD.
Worldcoin analysis and prediction
In the chart above, we can see that the cryptocurrency managed to successfully rebound off the ascending trendline shown above, indicating that $WLD is bullish in the long term.
The bears seem active at around $6, which lends some clarity to $WLD’s price prediction.
In the long term, we can conclude that if we do not see a break below this ascending trendline, or below the previous higher low around $3.68, Worldcoin remains safe from the bears
Conversely, if we eventually see a decisive break and close above $6, the bulls may have a fair chance at turning the tide and pushing Worldcoin further up to the $14.23 price target.
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