Worldcoin to raise $50m via discounted token sale

The Worldcoin (WLD) cryptocurrency project is reportedly planning to secure up to $50 million via a discounted token sale.

The project, co-founded by OpenAI’s Sam Altman, will offer WLD tokens at a suggested price of $1, according to BitKe. This presents a significant markdown from the current $2.51.

Tools for Humanity, the principal developer firm behind Worldcoin, is overseeing the sale.

Discounted token sale

In October, Worldcoin faced suspension in Kenya as numerous individuals gathered at various locations to register and undergo eye scans in return for 25 WLD tokens, equivalent to approximately Ksh7,700 ($54.60) at that time. 

The project came under scrutiny for allegedly collecting data from locals without proper licensing from authorities. Despite this, the program witnessed participation from over 2.5 million individuals globally.

Tools For Humanity (TFH) has initiated discussions with investors to potentially raise additional funds through the sale of WLD tokens.

Recent talks suggest TFH is exploring an over-the-counter sale of WLD, aiming to secure up to $50 million. The proposed token price is $1 for WLD, a considerable discount compared to the current spot price of $2.50.

Worldcoin utilizes WLD as an incentive to drive user engagement in the protocol, rewarding individuals with tokens for undergoing eye scans. The token officially launched on July 24, 2023, with an initial eligibility of over 2 million people to receive their allocation.

The project has unveiled plans to decentralize the network and introduced an inaugural grants program designed to support developers.

In its latest funding round, a Series C investment totaling $115 million was led by Blockchain Capital, with additional support from FT Partners. TFH has notable investors, including a16z crypto, Bain Capital Crypto, Distributed Global, and Khosla Ventures.

In earlier fundraising endeavors, investors participated in acquiring both equity in TFH and token warrants.

The Worldcoin digital identity project 

Worldcoin, under the helm of CEO Alex Blania, aims to establish an advanced digital identity system by utilizing biometric verification methods, such as facial and iris authentication.

In development for three years, the project looks to assign a unique World ID to each user, employing a so-called ‘proof of personhood’ concept. This is expected to have significant economic implications as it becomes increasingly challenging to distinguish between humans and AI bots. 

With $125 million raised since its 2019 inception, notable backers include Andreessen Horowitz, Khosla Ventures, and Reid Hoffman. 

Despite facing flaws in data privacy and marketing practices, including allegations of collecting undisclosed personal data, the startup had secured $115 million in funding, boasting over two million unique World IDs.

As outlined in a blog post on Dec. 6, the grants from Worldcoin will be distributed in WLD tokens, with 2 million coins designated across three tracks within the Worldcoin Tech Tree. 

The first track, community grants, reserves up to 5,000 WLD for sponsorships, hackathons, and similar initiatives. Moving to the second track, project grants aim to back substantial projects with grants of up to 25,000 WLD.

The “Wave0” program, a $5 million grant initiative, supports developers in creating resilient technology and equitable systems on the Worldcoin blockchain.

These grants, distributed in WLD tokens, aim to empower innovative projects within the Worldcoin community, focusing on areas like privacy, biometrics, and applications leveraging World ID. Aligned with the “Worldcoin Tech Tree,” this initiative targets creators, technologists, and organizations contributing to the Worldcoin ecosystem’s growth.

This may underscore Worldcoin’s commitment to a robust community addressing global challenges, raising awareness, and promoting technology’s role in combating issues like income inequality and governance.