FTX estate auctioning $38M in Worldcoin tokens this week

The FTX (CRYPTO:FTT) bankruptcy estate is set to auction approximately 22 million Worldcoin (CRYPTO:WLD) tokens valued at around $38 million on Oct. 3.

According to reports, investor bids must be submitted by 8 p.m., with a minimum bid of $2.5 million required to participate.

The tokens could sell at a steep discount, potentially up to 75% off their current market value.

The auctioned tokens will be subject to a 4-year unlocking schedule, with 20,000 WLD tokens unlocking daily beginning on Dec. 1, 2024.

From July 2026 until the unlocking concludes in 2028, the schedule will slow to around 14,000 tokens per day.

In previous auctions, the FTX estate has been criticized for selling assets at significant discounts.

During its sale of Solana (CRYPTO:SOL) in May 2024, tokens were sold at $102 when the trading price was closer to $180, leading to concerns that creditors were being shortchanged.

FTX creditor Sunil Kavuri publicly voiced his frustration, stating, "FTX had $10 billion in Solana tokens — they sold at a 70% discount."

Tensions between creditors and the bankruptcy estate remain high.

A revised bankruptcy plan proposed by FTX suggests creditors could only recover between 10% to 25% of their holdings due to the calculation of losses at lower crypto prices when the legal petition was filed.

Rumors circulated recently that FTX would begin distributing funds to creditors and customers on Sept. 30, causing a 70% surge in FTT, FTX’s native asset.

However, these rumors were false, and the court hearing to confirm reimbursement is scheduled for Oct. 7.

At press time, the FTX token price was $2.08, while the Worldcoin price was $1.64.