World Foundation has managed to raise $65 million in funds via an over-the-counter sale of its WLD token, as the digital currency hit record lows and faced regulatory issues in different countries after its launch in 2023.
The foundation confirmed the sale in a post on X on Saturday. It stated that its token arm, World Assets, had made the deal with four different parties.
The deals happened over the past week. The first tranche happened on March 20. The average price per token is about $0.27. About 239 million tokens were sold.
World Foundation Outlines Spending as WLD Hits Bottom
According to the World Foundation, the funds will be used for various essential operations. These include research and development and the manufacturing of orbs.
It also includes the development of the ecosystem. Out of the funds, $25 million in tokens is being locked for a period of six months. The rest of the tokens were immediately released into the market.
The announcement triggered a market reaction. WLD briefly fell to around $0.24, marking an all-time low. It later recovered to about $0.27.
The token is still down nearly 97% from its peak of $11.82 in March 2024. According to CoinMarketCap, it is now trading at $0.2740, up 0.82% over the past day.
Additional supply pressure may follow. A major community token unlock is set for July 23. This release will cover about 52.5% of the total 10 billion token supply. The data was reported by DefiLlama. Large unlock events can increase circulating supply and impact prices.
Also Read: Worldcoin Holds Support as Falling Wedge Signals Potential Rebound Toward $0.85
WLD Valuation Falls as Regulatory Issues Mount
The recent sale indicates a significant cut from the previous funding. Last year, the World Foundation raised $135 million in May. The tokens at that time were valued at about $1.13. The investors included Andreessen Horowitz and Bain Capital Crypto. The current sale price reflects a sharp decline.
The issue of regulatory challenges also persists. In October last year, authorities in Thailand raided an iris scanning facility linked to this project. According to authorities, this service may have contravened digital asset legislation because it was not licensed to operate.
The Securities Exchange Commission collaborated with the Cyber Crime Investigation Bureau in this case. There were arrests in this case, and investigations are ongoing.
The project has also come under scrutiny in Indonesia, Germany, Kenya, and Brazil. The authorities have expressed concerns over licensing and handling sensitive biometric data.
Also Read: Canada’s Releases New Election Reforms on Crypto with Tough $100,000 Penalty
