Worldcoin (WLD), an ambitious project that combines artificial intelligence with cryptocurrency, has recently encountered significant headwinds. The downturn is primarily attributed to the aggressive selling actions of Alameda Research, a major player in the crypto market. As Alameda dumps millions of WLD tokens onto the market, investor sentiment has shifted, raising concerns about the token’s immediate future.
In a striking development, Worldcoin has seen increased selling pressure as Alameda Research offloads large quantities of WLD tokens to Binance, one of the leading cryptocurrency exchanges. Recent data from on-chain tracker Spot on chain reveals that Alameda has been selling approximately 143,770 WLD tokens weekly for the past two months. This pattern indicates a deliberate strategy to liquidate significant holdings in the token.
Since August 9, Alameda has reportedly sold 1.56 million WLD tokens, valued at around $2.51 million, across ten separate transactions. The average price for these sales was approximately $1.605. Notably, Alameda still retains a substantial amount of WLD, with around 23.44 million tokens left in its possession, valued at about $43 million. Given the current rate of selling, analysts estimate it could take up to three years for Alameda to completely offload its remaining holdings. Such prolonged selling could exert additional downward pressure on WLD’s price.
In response to these massive sell-offs, the price of Worldcoin has taken a hit. Over the past day, WLD dropped nearly 5%, now trading at $1.86. During this period, the token reached an intraday low of $1.83 and a high of $1.98. The consistent selling activity by Alameda has contributed to a bearish sentiment surrounding WLD, prompting many investors to reevaluate their positions in the asset.
In addition to the price decline, data from Coinglass shows a 10% drop in the token’s futures open interest to $170.83 million. Furthermore, the derivatives volume has plummeted by 31%, falling to $754.13 million over the same timeframe. These statistics highlight a decline in investor interest and confidence in Worldcoin, suggesting that continued sell-offs could lead to further price dips.
Despite the current bearish sentiment, there are analysts who believe that Worldcoin could experience a significant rebound in the future. A recent price analysis by Coin Gape suggests that WLD might even rally by as much as 400%. This optimistic outlook is fueled by speculation surrounding potential corporate actions, particularly the anticipated acquisition of Open AI by Microsoft, a company associated with Worldcoin’s founder, Sam Altman.
Should such a development occur, it could create renewed interest in Worldcoin, potentially attracting new investors and driving up the token’s value. However, for the time being, the token’s price remains vulnerable to ongoing selling pressure from Alameda Research.
Worldcoin is currently navigating a challenging environment characterized by significant sell-offs from Alameda Research. The recent price decline and reduced investor interest signal potential further downside for WLD in the short term. However, analysts remain cautiously optimistic, suggesting that favorable developments in the broader AI and cryptocurrency sectors could provide a lifeline for the token.
As the market evolves, it will be crucial for investors to stay informed about Worldcoin’s performance and the actions of major stakeholders like Alameda. The interplay of market dynamics, investor sentiment, and external events will ultimately determine the future trajectory of WLD in this rapidly changing landscape.
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