As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I find myself intrigued by this auction of Worldcoin tokens by the FTX estate. The discounted pricing and potential for long-term gains are certainly enticing, but the prolonged locked-up period may be a stumbling block for some investors who prefer liquid assets.
As a crypto investor, I’ve learned that the FTX estate, in an attempt to recoup funds for those impacted by the company’s bankruptcy, is planning to auction off around 22.4 million Worldcoin (WLD) tokens, currently valued at approximately $33.7 million. This move is part of their recovery efforts.
The event is likely to draw considerable interest since the tokens are set to be offered at a significant reduction, ranging from approximately 40% to 75% below their current market value, which stands at about $1.69 per token.
Interested parties should send their proposals by 8 PM Eastern Time on Wednesday evening. You’ll receive updates regarding successful bids on Thursday. This auction presents a chance for buyers looking to acquire all 22.3 million tokens at once.
On the other hand, Worldcoin tokens are temporarily inaccessible upon purchase, which means you can’t immediately sell or utilize them. Instead, they become accessible in a gradual manner over the coming years.
Starting on December 1, 2024, and continuing until July 24, 2026, there will be 20,539 tokens released daily. From July 25, 2026, to July 24, 2028, the daily release will be 13,689 tokens. However, some potential buyers might find this long lockup period off-putting, as many investors tend to prefer assets with a more immediate availability due to their cautious nature.
FTX Estate, following its bankruptcy in 2022, has been known for liquidating assets at significantly reduced prices. This practice came about due to the discovery of a $8 billion shortfall in their financial records.
On March 28, Sam Bankman-Fried, the CEO, received a 25-year prison sentence due to charges of fraud and misappropriation of client assets. Ever since then, the organization has been actively working towards returning the money owed to its creditors.
Previously this year, the estate sold 1.9 billion dollars’ worth of SOL tokens at a price of $64 each, which was approximately 68% cheaper than their market value.
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2024-10-02 22:44