Tools For Humanity, the lead developer of Worldcoin, the cryptocurrency project co-created by Sam Altman, is discussing raising more capital through a sale with investors. world
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TFH has been talking to several investors over the past few weeks about a possible over-the-counter sale of WLD. Two people familiar with the process said the company hopes to raise up to $50 million and that WLD is likely to be priced at $1 per token. This is a significant discount compared to the typical spot price of $2.50. However, another person close to the deal emphasized that no terms have yet been finalized.
FT Partners, a San Francisco-based investment bank focused on the fintech sector, is supporting the increase, according to a third person familiar with the matter. Demand from potential investors has been strong since the token was launched, said a fourth person with knowledge of the deal, adding that further investments in WLD will be subject to standard conditions regarding lock-up.
A Worldcoin spokesperson declined to comment.
Worldcoin is an identity-centric crypto project that uses an orb device to scan people’s irises to prove their identity online. Co-creator Sam Altman is also CEO of OpenAI, which developed the smash hit generative AI tool ChatGPT. He recently survived a dramatic attempt by OpenAI’s board to oust him as CEO and regained control of the company on November 22.
How WLD is applied to the Worldcoin project
Worldcoin uses WLD as an incentive to get users to join the protocol, rewarding those who scan their eyeballs with tokens. The token was officially launched on July 24th. At that time, more than 2 million people stood up to receive their shares. Currently, over 2.5 million people have signed up.
According to The Block’s pricing page, WLD’s price soared to more than $3 at launch, then fell to just under $1 in September. Since then, it has steadily risen to the current price of $2.50. The initial launch of the token was criticized by some commentators who argued that the “low float” structure created an artificially high price.
The price of Worldcoin has been rising over the past few weeks. Image: The Block’s pricing page.
Worldcoin’s whitepaper states that up to 143 million WLD tokens will be in circulation at launch, out of a total of 10 billion. Of the 143 million, 43 million were delivered to verified users and another 100 million were loaned to five market makers operating outside the United States over a three-month period.
TFH, the San Francisco-based for-profit company that has driven most aspects of Worldcoin so far, has raised hundreds of millions of dollars from venture capitalists. Most recently, it raised a $115 million Series C round led by Blockchain Capital in May. My partner also helped. Other investors in the business include a16z crypto, Bain Capital Crypto, Distributed Global, and Khosla Ventures. Previous raises saw investors purchasing shares of TFH in addition to token warrants.
According to the whitepaper, WLD held by backers will begin unlocking 12 months after token launch. This means that sales are possible assuming the investor exercises the warrant in July. Tokens are then unlocked evenly every day and over 24 months. The same rules apply to past and present TFH employees.
Earlier this week, the Worldcoin Foundation, the non-profit organization guiding the project’s ongoing development, outlined plans to decentralize the network while also launching its first grant program for developers.
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