Worldcoin rallies over 36% after announcing token unlock extension
- Worldcoin announced the extension of WLD token unlocks for team members and investors from three to five years.
- Investors raised concerns about the rising supply of WLD, speculating a possible price manipulation.
- WLD is up more than 36% following the announcement.
Worldcoin (WLD) is up over 36% on Tuesday, following the Worldcoin Foundation's announcement that the lock-up schedule for WLD tokens has been extended from three to five years. This follows concerns from investors over the large amount of WLD supply that has been entering circulation in the past few months.
WLD soars as Worldcoin extends token unlock schedule
Decentralized identity protocol Worldcoin announced in a blog post today that the token lock-up period for early Tools for Humanity contributors and investors has been extended from three to five years.
Tools For Humanity (TFH) is the software company that helped develop the Worldcoin project before transferring its ownership to the Worldcoin Foundation. However, the company still helps develop and operate the World App. As a result, the team behind TFH was actively allocated locked WLD tokens for their efforts.
Before the announcement earlier today, the WLD unlock schedule was set for three years, with approximately 3.3 million tokens entering circulation daily. However, following the schedule change, only 2 million tokens will be unlocked daily for five years.
Interestingly, Worldcoin holds the highest unlock value of its token this month, with roughly 53% of its supply worth over $600 million being released into circulation, according to data from Token Unlocks.
July Token Unlocks
Meanwhile, early investors in the Worldcoin project have reacted to the sudden change in the previous schedule, claiming that the plan alteration will affect their investment strategies. Investors had also previously criticized Worldcoin due to its heavy unlocks in the past months.
Other investors, on the other hand, suggested it may be a plot to manipulate the token's price, as it quickly rallied after the announcement.
WLD token is up over 36% in the past 24 hours and may continue the rally with bullish sentiment prevailing in the wider market. The rise may be due to renewed investor confidence, as fewer unlocks signify a lower downside impact on prices.
Investors must also exercise caution as a price correction often follows periods of heightened investors’ confidence. With over 99% of WLD tokens in profit, it won’t be a shock if a few investors sell off their tokens to book profits.
WLD Global In/Out of the Money
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
