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Worldcoin, the innovative cryptocurrency project co-founded by OpenAI’s CEO Sam Altman, has recently experienced a significant shift in its market value. The token’s price saw a drop of over 6%, largely attributed to the continuous sales by Alameda Research. Industry analysts are speculating that the Worldcoin (WLD) price might hover in a lateral trend before making a bullish comeback.
Alameda’s Ongoing Worldcoin Sell-off
In recent reports, SpotOnChain, an on-chain data analysis firm, disclosed that Alameda Research has been actively transferring a portion of its WLD holdings to various cryptocurrency exchanges for the last two months. Since early August, FTX’s affiliate has moved 1.56 million WLD tokens to Binance. This strategic transfer seemingly aligns with the broader financial maneuvers of the firm.
Every week since August 9, approximately 143,770 WLD tokens, valued at around $2.51 million, have been sold by Alameda in 10 distinct batches at an average price of $1.6. This development unfolded just two days after US Bankruptcy Judge John Dorsey approved FTX’s repayment plan, which is pivotal for the exchange.
The court’s decision permits the crypto exchange to disburse between $14.7 billion and $16.5 billion in recovered crypto assets to its customers. Alameda is reported to have received about $8 billion of FTX users’ misappropriated funds, allegedly utilized for the company’s trading activities.
The sell-off is speculated to be closely tied to FTX’s impending repayment strategy, which is anticipated to generate additional selling pressure from the involved entities. According to SpotOnChain’s analysis, Alameda’s wallet retains 23.44 million WLD tokens, currently estimated at $43 million. At the ongoing rate of sale, it could feasibly take over three years to completely liquidate Alameda’s Worldcoin assets.
Moreover, other altcoins might experience similar selling pressures from the organization. The wallet also contains $98.8 million in other digital currencies, including 100.9 million Stargate Finance (STG), 1.78 million Mantle (MNT), and 98.86 million BitDAO (BIT), which has now transitioned to MNT. Notably, the company’s BIT holdings, valued at $68 million, might commence sales in November, as the 3-year no-sale commitment with BitDAO concludes.
Worldcoin Price Reactions to Alameda’s Moves
Subsequent to the sell-off reports, Worldcoin witnessed a 6% decline on the daily chart. The token’s value descended from the $1.98 threshold to the $1.77 support level within the last 24 hours, marking a 4.5% downturn in WLD’s biweekly performance.
Interestingly, Worldcoin reported a substantial 31% weekly increase in late September after the announcement of its strategic expansion into three new nations. As highlighted by NewsBTC, the crypto initiative disclosed its plans to extend its World ID services to Guatemala, Poland, and Malaysia.
This announcement, combined with the broader recovery within the cryptocurrency market, propelled the token’s price above the $2 mark, albeit temporarily. However, since that peak, the token has faced challenges in reclaiming its critical support zone, fluctuating between $1.58 and $2.03 levels over the past week.
Market Analysts’ Perspectives
Crypto analyst Yuiry from BikoTrading observed that WLD’s price retested the critical $1.5 level after the drop on October 1, managing to bounce back by approximately 33% from this point. As the token persistently endeavors to challenge the $2 resistance level, the analyst anticipates it might oscillate within the $1.8 to $1.98 range for some days before potentially breaking through.
At the time of this analysis, Worldcoin is trading at $1.8, reflecting an 8.7% weekly and 27.4% monthly increase, underscoring its volatile yet dynamic market performance.
