- FTX will auction Worldcoin tokens with a long unlocking period starting in 2024.
- Critics have raised concerns over past asset sales at deep discounts.
- Tensions remain high between FTX creditors and the bankruptcy estate over fund recovery.
The FTX bankruptcy estate plans to auction around 22 million Worldcoin (CRYPTO:WLD) tokens today, October 3. These tokens have a total value of about $38 million. Bids must be in by 8 p.m., and the minimum purchase stands at $2.5 M. This auction is attracting attention from many people in the digital assets sector.
Token Unlocking Schedule and Market Dynamics
The Worldcoin tokens being auctioned will not be available for immediate trading. They will follow a four-year unlocking schedule. Starting December 1, 2024, 20,000 tokens will unlock each day. From July 2026 onward, the daily unlocking rate will drop to around 14,000 tokens. This means the full unlocking will finish in 2028. This long wait might discourage some bidders from joining the auction.
Furthermore, FTX has received criticism for its past asset sales. In May 2024, the estate sold Solana (SOL) tokens at a large discount. The tokens sold for $102 while the market price was near $180. Critics like creditor Sunil Kavuri voiced their concerns about this sale. He pointed out that FTX had $10 billion in Solana tokens sold at a 70% discount. This situation caused dissatisfaction among creditors about how assets were managed.
Tensions Between Creditors and the FTX Estate
Tensions between FTX creditors and the bankruptcy estate have risen recently. The estate announced a new plan that limits how much creditors can recover. Creditors might only get back between 10% and 25% of their holdings. This calculation is based on asset values when the legal petition was filed. At that time, crypto prices were much lower, causing frustration among investors.
Additionally, rumors about FTX distributing funds to creditors have spread. These rumors led to a 70% rise in the price of FTX’s native asset, FTT. However, these claims were later proven false. A court hearing to confirm reimbursements is scheduled for October 7.
As the auction nears, a key question arises: How will the unlocking schedule affect interest in Worldcoin tokens? This question could influence the auction dynamics and the wider cryptocurrency market.
The post FTX Estate to Auction 22 Million Worldcoin Tokens Today appeared first on Crypto News Land.