Buying against the tide after a 90% drop? a16z and Bain spend $135 million on WLD
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Buying against the tide after a 90% drop? a16z and Bain spend $135 million on WLD
Two venture capital funds directly purchased WLD tokens at full price without any discount.
Navigating Web3 tides with focused insightsBy: 1912212.eth, Foresight News
On May 21, World Foundation announced that its subsidiary, World Assets Ltd., sold $135 million worth of WLD tokens at market price to early supporters Andreessen Horowitz (a16z) and Bain Capital Crypto. Following the announcement, WLD's price surged over 13% briefly, reaching a high of $1.29, while trading volume spiked by 70%.
In response, Matt Hougan, Chief Investment Officer at Bitwise, tweeted: "a16z and Bain are spending big money buying WLD—a token that has fallen 90% over the past 14 months. I've never seen anything like this before. Honestly, it's kind of interesting."
Two Venture Funds Buy Undiscounted Tokens
According to an official Worldcoin announcement, this is not a new round of venture capital investment. Instead, the two VC firms directly purchased undiscounted WLD tokens. Investors include prominent firms a16z and Bain Capital Crypto. The funds will primarily accelerate the expansion of the World network, especially supporting its rollout in the U.S. market, including building an Orb manufacturing facility in Richardson, Texas, for mass production of iris-scanning identity verification devices. According to the official blog, as of April 28, 2025, the circulating supply of WLD reached 1.3 billion tokens, representing 13% of the total supply.
Notably, this marks another major token purchase by a16z this year. The previous instance was in April, when a16z invested $55 million to acquire LayerZero’s ZRO tokens, with a three-year lock-up period.
Worldcoin was co-founded in 2019 by Sam Altman, CEO of OpenAI, among others, aiming to build a global identity verification system called "World ID" using iris-scanning technology to distinguish humans from AI and address growing digital identity needs. In May 2023, Tools for Humanity, Worldcoin’s development company, completed a $115 million Series C funding round led by Blockchain Capital, with participation from a16z, Bain Capital Crypto, and Distributed Global.
As of May 2025, the Worldcoin network has attracted over 26 million users, with 12.5 million holding Orb-verified World IDs. Worldcoin has established a solid user base globally, showing particularly strong appeal in emerging markets.
This token sale comes amid a broader recovery in the cryptocurrency market. Bitcoin recently hit new highs, driving up prices across multiple tokens including WLD. By conducting this large-scale token sale now, Worldcoin has capitalized on market momentum while securing funding for its U.S. expansion.
Why did these two VCs choose to buy WLD tokens now?
a16z and Bain are classic long-term investors who typically aim to capture platform-level opportunities rather than engage in short-term speculation. Although WLD is currently at a low point, it may represent an undervalued opportunity given its technology, team, and vision. Market panic and misvaluation create openings—while a 90% drop has driven many retail investors away, sophisticated institutions may see this as a clear signal that the price is far below intrinsic value. They might believe the market has overreacted, making this an ideal time to accumulate.
Additionally, Worldcoin’s firm defense against privacy concerns at Consensus 2025 further strengthened investor confidence. The team emphasized that iris scan data is stored locally and complies with privacy regulations, which helped alleviate some market worries about data security.
Expanding U.S. Presence and Technological Innovation
One key goal behind this VC token purchase is to support Worldcoin’s expansion in the U.S. market. On May 1, Worldcoin launched its identity verification system “World ID” in the United States, opening iris-scanning service points in six cities including San Francisco, Los Angeles, and Miami.
Beyond that, ongoing initiatives such as the World App debit card in partnership with Visa and a pilot age-verification program with Match Group on Tinder show active progress in finance and social applications. These efforts not only enhance Worldcoin’s brand visibility but also expand real-world utility for its WLD token.
Technologically, the launch of the Orb Mini device and World ID 3.0 reflects continuous innovation in blockchain and biometrics. Powered by NVIDIA technology, Orb devices efficiently perform iris scans and generate privacy-preserving digital identities—an increasingly important capability in the context of combating AI-generated content. Worldcoin has also introduced World Chain, a blockchain that prioritizes transactions verified as human, further strengthening the integrity of its tech ecosystem.
Summary
Despite promising prospects, Worldcoin still faces significant challenges. First is privacy. Although the team repeatedly emphasizes its data protection measures, iris-scanning technology has sparked controversy in several regions. In early May 2025, Indonesia suspended Worldcoin operations due to privacy concerns, while Spain and Portugal previously launched investigations into its data collection practices. Such regulatory pressures could slow Worldcoin’s expansion in certain markets. Finally, Worldcoin’s business model remains unproven. While its user base is growing rapidly, turning iris-scanning technology and the WLD token into sustainable commercial value will require time and validation.
Nevertheless, Jake Brukhman, co-founder of CoinFund and one of Worldcoin’s earliest investors, remains highly optimistic. In sharing a bullish post on WLD, he said: "I first bought Bitcoin when its fully diluted valuation (FDV) was around $10 billion. That was 12 years ago—back when nearly every entrenched interest, from media to financial institutions to governments, was trying to kill it, until things finally shifted. WLD will become a more widely distributed currency, entering an era full of tailwinds: a favorable regulatory environment, iOS support for crypto, and 12 years of blockchain innovation finally moving into real-world application."
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