FTX Estate Prepares to Auction $37.7M Worth of Locked Worldcoin (WLD) Tokens

The FTX estate is preparing to auction 22.3 million locked Worldcoin (WLD) tokens, valued at around $37.7 million.

The FTX estate is preparing to auction 22.3 million locked Worldcoin (WLD) tokens, valued at around $37.7 million at current prices. Potential buyers will be offered a significant discount, ranging from 40% to 75%. This is notably lower than the digital asset’s current price, which stood at $1.60 at the time of writing.

The auction is part of the estate's ongoing efforts to sell off FTX's assets following the collapse of the cryptocurrency exchange last year. This news comes as FTX's executives and affiliates, such as Sam Bankman-Fried, continue to face serious legal challenges.

According to the announcement, interested bidders will have until Wednesday to submit their bids. Afterwards, successful bids will be confirmed by Thursday. Notably, these locked WLD tokens are subject to a gradual unlock schedule, which will span several years and conclude in 2028.

The announcement further disclosed that the unlocking of the tokens will commence on December 1st. During the first phase, 20,539 tokens will be unlocked daily until July 24, 2026. Following this, a total of 13,689 tokens will begin unlocking each day from July 25, 2026, continuing until July 24, 2028.

Importantly, the estate has stated that this will be the last auction of WLD tokens. This means that there will be no further opportunities for potential buyers to purchase these assets at a discount.

The lengthy lockup period has raised concerns among potential buyers regarding potential risks and delayed liquidity. However, despite this, the opportunity to purchase at such steep discounts could attract interest from investors, particularly those looking to capitalize on long-term plays.

Previously, the FTX estate conducted auctions to sell off large quantities of Solana (SOL) and Metaplex (MPLX) tokens earlier this year. These auctions presented a unique opportunity for investors to acquire tokens at significantly lower prices.

Among the high-profile investors who showed interest in the earlier Solana auction was Pantera Capital. At the time, the FTX estate managed to sell $7.5 billion worth of discounted tokens from the failed exchange.

Now, the FTX estate holds about $594 million in assets, the bulk of which is FTX’s native token, FTT. The estate has noted that this token remains highly non-liquefiable and has been marked down to zero. With fewer tokens remaining for future sales, this auction could mark one of the final significant moves by the estate to recover funds for its creditors.

As the legal storm surrounding FTX continues to unfold, the WLD auction serves as a reminder of the ongoing efforts to sell off the exchange's assets and compensate its creditors.

Last month, Michelle Bond, a Republican candidate for Congress in 2022, pleaded not guilty to charges related to campaign finance violations, which included allegations that she accepted illegal donations from FTX co-founder Sam Bankman-Fried.

Meanwhile, Caroline Ellison, the former CEO of Alameda Research, is also facing legal action. Despite cooperating with authorities earlier in the case and pleading for leniency, these legal challenges add another layer of complexity as U.S. regulatory bodies, including the SEC, intensify their scrutiny of the defunct exchange.

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