FTX, the cryptocurrency exchange that faced a high-profile collapse, is set to auction its holdings of WLD tokens, offering investors a rare opportunity to purchase them at steep discounts ranging from 40% to 75% off the current market price. With WLD trading at approximately $1.69, this auction could attract significant interest from bidders looking to capitalize on the reduced prices.
Bidders must submit their offers by Wednesday morning, with successful participants notified the following day. This sale is anticipated to be the last chance to acquire WLD tokens directly from FTX's holdings, marking a pivotal moment for investors eager to get involved before the assets are completely liquidated.
The auction follows a series of previous token sales conducted by FTX management, which have successfully recovered substantial funds. These sales included the auctioning of Solana (SOL) and Metaplex tokens, demonstrating FTX's ongoing efforts to stabilize its financial position post-bankruptcy. Despite these efforts, FTX still retains approximately $594 million in remaining assets, indicating a long road ahead in the recovery process.
While the significant discounts may entice bidders, there are some concerns regarding the lengthy lockup period associated with the WLD tokens. The tokens are under a gradual unlocking schedule that will not conclude until 2028. Starting December 1, 2024, 20,539 tokens will unlock daily until mid-2026, after which 13,689 tokens will unlock daily until the end of the lockup period. This extended timeline has raised questions among potential buyers about liquidity and access to their investments.
Figure Markets CEO Mike Cagney confirmed that the FTX estate is auctioning its WLD holdings and hinted that the discount could reach as high as 75%. Cagney also indicated that Figure Markets may participate in the auction, akin to their involvement in earlier sales of Solana tokens. This potential participation underscores the interest and competitive nature of the upcoming auction.
The auction of WLD tokens by FTX presents a unique opportunity for investors, particularly given the steep discounts on offer. However, prospective bidders must carefully weigh the benefits of acquiring these tokens against the concerns posed by the extended lockup period. As the auction approaches, all eyes will be on the bidding dynamics and the level of interest from the cryptocurrency community.
As FTX continues its efforts to recover from its tumultuous past, the outcome of this auction could have implications not just for the exchange but also for the broader market as it navigates the complexities of a recovering crypto landscape.
October 2024, Cryptoniteuae