- The cryptocurrency market has been abuzz with recent developments from Worldcoin.
- Significant extensions in token lock-up periods may influence investor sentiment.
- Worldcoin’s announcement has led to notable price movements in the market.
Discover the impact of Worldcoin’s extended token lock-up period and its market implications.
Worldcoin Extends Token Lock-Up Period
Worldcoin, co-founded by OpenAI CEO Sam Altman, has extended the lock-up period for a large portion of its tokens from three years to five years. This substantial change has stirred notable reactions within the crypto community. Announced on July 24th, this extension affects the tokens held by Tools for Humanity (TFH) team members and investors, who were previously set to have their holdings unlocked sooner.
Investor and Team Member Tokens Gradually Released
The project revealed that tokens allocated to TFH investors and team members will be gradually released on a daily basis. Initially planned for a three-year lock-up, 80% of these tokens will now remain locked for an additional two years. This staggered release aims to mitigate any sudden impact on the token’s market price, ensuring a more stable and predictable supply of Worldcoin (WLD) tokens in the market.
Market Reactions and Price Movements
Following the announcement, there has been a visible effect on the market. According to CoinGecko data, the price of WLD witnessed an immediate spike, jumping from $2.14 to $2.45, marking a significant 14.4% increase. This price movement underscores the market’s responsive nature and the pivotal role that major project announcements play in price determination.
Impact on Circulating Supply
Worldcoin Foundation, along with its associated entity World Assets Ltd, currently manages the Worldcoin Community Pool, which holds approximately 7.22 billion WLD tokens. The addition of the unlocked tokens from TFH investors and team members will integrate into the circulating supply, further influencing market dynamics.
Verified World ID Holders Remain Unaffected
It is important to note that tokens set aside for verified World ID holders will not be affected by this change. Over 211 million WLD tokens, representing 77% of the current circulation of 275 million, have already been claimed by verified users. This reserved allocation ensures continued support and stability for verified participants within the Worldcoin ecosystem.
Conclusion
In summary, the extension of Worldcoin’s token lock-up period marks a strategic move aimed at fostering long-term stability and investor confidence. The immediate market response highlights the significant impact that such announcements can have. As these developments unfold, stakeholders and market participants will be closely monitoring the effects on Worldcoin’s market position and overall crypto market trends.
