FTX to Auction Locked Worldcoin Tokens at Steep Discount

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The FTX estate is preparing to auction 22.3 million locked Worldcoin (WLD) tokens, valued at around $37.7 million. The sale offered potential buyers a significant discount, ranging from 40% to 75%. This steep discount is far off the digital asset’s current price of $1.60.

The auction is part of the estate’s ongoing liquidation process after the collapse of the FTX exchange. This news comes as FTX’s executives and affiliates face serious legal challenges.

Lengthy Unlock Period for WLD Tokens

The announcement revealed that interested bidders have until Wednesday to submit offers. After that, successful bids will be confirmed by Thursday. This FTX estate’s locked WLD tokens are subject to a gradual unlock schedule through 2028.

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It was disclosed that the unlocking will begin on December 1st. 20,539 tokens will be released daily until July 24, 2026. Afterwards, 13,689 tokens will start unlocking from July 25, 2026, to July 24, 2028. The estate noted that this will be the last auction of WLD tokens. This means no further opportunities will arise to buy these assets at a discount.

This long lockup period has raised concerns among potential buyers about 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.

Previous Token Auctions and Remaining Assets

This auction follows previous sales by the FTX estate, which included large quantities of Solana (SOL) and Metaplex (MPLX) tokens earlier this year. High-profile investors like Pantera Capital showed interest in the earlier Solana auction. At the time, FTX estate liquidated $7.5 billion of discounted tokens.

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

FTX’s Legal Storm Deepens

The WLD action arrives when the exchange and its affiliates are entangled in serious legal battles. Last month, Michelle Bond pleaded not guilty to charges related to campaign finance violations.

Meanwhile, Caroline Ellison, the former CEO of Alameda Research and a key figure in the investigation, is also facing legal action. Although she cooperated with authorities earlier in the case and pleaded 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.