Worldcoin Token Lock-up Extension Boosts Price
Worldcoin recently announced a significant change in its token lock-up policy, extending it from 3 years to 5 years for early project contributors. This decision had an immediate impact on the price of the WLD token, which surged by more than 20%, reaching a high of $2.42.
Market Reaction to Positive News
The price increase for WLD was not just a random spike but rather a reaction to positive news regarding Tools for Humanity, a development team associated with Worldcoin. The market perceived this announcement as a vote of confidence in the project’s long-term vision, leading to a surge in buying activity.
Transitioning to a longer lock-up period for tokens held by team members and investors is a strategic move that aligns with Worldcoin’s mission of sustainable growth and development.
Impact on World ID Holders
Worldcoin boasts more than 6 million World ID verifications through sphere scanning, showcasing a strong user base. Since its launch in July 2023, over 211 million WLD tokens have been claimed by World ID holders, representing a significant portion of the circulating supply.
Despite the price surge, the overall token distribution remains steady, with the WorldCoin community pool holding a substantial amount of WLD tokens. This pool is managed jointly with World Assets Ltd to ensure the project’s long-term sustainability.
Regulatory Challenges and Price Impact
However, the positive momentum was dampened by regulatory challenges, as Hong Kong authorities issued a ban on Worldcoin’s biometric data collection practices. This decision led to a decline in the WLD token price, dropping it below the $5 mark.
