The primary developer of Worldcoin is currently seeking to raise up to $50 million through the sale of OTC tokens (WLD) at a price less than 2.5 times the current market value.
For several weeks, Tools For Humanity (TFH), the main developer behind Worldcoin, has been in negotiations with investors regarding the proposal to sell OTC tokens WLD to raise additional capital. According to the negotiations, TFH plans to raise a maximum of $50 million, with the token price set at $1 per token. This price is significantly lower than the current market value of $2.5 per WLD. However, the terms of the deal have not yet been finalized.
Financial Technology Partners (FT Partners), an investment bank focused on the FinTech sector in San Francisco, is currently supporting TFH in its fundraising efforts. FT Partners has stated that if the terms are approved, conditions regarding the locking/allocation process of WLD tokens will be applied to ensure economic value for the project.
It’s worth noting that TFH plans to launch the sale of WLD tokens shortly after the Worldcoin Foundation, the nonprofit organization behind the Worldcoin project, announced the establishment of a $5 million grant fund called “Wave0” for initiatives and ideas focused on “technology development and equality systems” for Worldcoin, such as privacy rights or biometric applications using Worldcoin and World ID solutions.
Worldcoin is an identity project that uses the Proof of Personhood mechanism to verify identity through “iris scanning” with the Orb sphere and stores data on the blockchain. Worldcoin is designed to become the world’s largest financial and digital identity network, providing ownership rights to everyone and access to the global economy. In mid-2023, TFH raised $115 million in funding and issued WLD tokens.
However, since the launch of the token, Worldcoin has faced various challenges, investigations, and bans in many parts of the world, including Argentina and the United Kingdom. Despite these challenges, the project has stated its commitment to further development in the future.
Following the news of the OTC token sale, WLD experienced a quick drop of nearly 5%. At the time of writing, WLD has recovered its price and is trading around $2.5.