Worldcoin (WLD) experiences a surge of over 30% following the announcement of an unlock schedule for early contributors by the project spearheaded by Sam Altman of OpenAI. The scheduled unlocking of Worldcoin tokens is set to commence on July 24, marking a significant phase for the project.
The initiative includes an extension of the unlock period for 80% of the tokens held by team members, which has now been lengthened from 3 years to 5 years. As the project prepares for this key transition, the market has reacted positively, with the Worldcoin token (WLD) seeing a notable surge of over 30% in the past 24 hours, currently trading at $2.67.
Despite a recent drop in price below $2, this surge indicates a strong recovery for the token. Worldcoin’s unique token distribution method involves a human verification process, where individuals receive World IDs after their irises are scanned by a device called the orb. While this process has been eliminated, over 211 million WLD tokens have already been claimed by verified World ID holders, representing over 77% of the current supply of 275 million WLD tokens.
The upcoming token unlock will see investors and Tools for Humanity team members receiving their initial distributions of WILD minted into the supply, starting on July 24, 2024. Approximately 2 million WLD held by TFH investors and team members will unlock each day, following a reduced amount of around 40% from the original figure. This extended unlock schedule aims to slow down the increase in circulating supply, as indicated by a forecasted circulating supply chart shared by Worldcoin.
This strategic move aligns with the project’s focus on promoting long-term success within its ecosystem. The Worldcoin Foundation and World Assets hold a substantial community fund of 7.22 billion WLD, dedicated to supporting project infrastructure and community initiatives. By controlling the release of these funds, the organization aims to minimize market disruptions and contribute back to its community.
However, despite these positive developments, Worldcoin has faced regulatory challenges in various regions due to privacy concerns. Operations in Spain were halted until at least the end of 2024 in response to an investigation by the Spanish Agency for Data Protection (AEPD) into the company’s data practices. Additionally, the project received a cease order from Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) amid concerns about data privacy risks.
These regulatory hurdles highlight the delicate balance Worldcoin must navigate as it continues to innovate and grow within the cryptocurrency space.
