Recently, Worldcoin [WLD] has emerged as a prominent performer within the cryptocurrency market, showcasing substantial positive momentum and achieving notable double-digit growth.
Nevertheless, the project, which combines artificial intelligence with digital currency, is currently encountering difficulties due to continuous selling activities initiated by Alameda Research.
Selling Pressure Fueled by Alameda Research
Blockchain data has unveiled that Alameda Research, a significant player in the market, is actively divesting its holdings in WLD. This has led to a nearly 5% decline in the token’s value in a single day.
As per CoinMarketCap, Worldcoin experienced a 5.20% drop over the past 24 hours and was trading at $1.72, triggering apprehensions among investors regarding the token’s sustainability in the long run.
This situation unfolded due to a crypto wallet linked to the now-defunct FTX exchange and its affiliated company, Alameda Research, transferring substantial amounts of WLD actively.
Additional Insights
For perspective, in the last two months, Alameda Research’s on-chain wallet has transferred an impressive 1.56 million WLD tokens to Binance, executing ten transactions at an average price of around $1.605.
This selling activity has yielded approximately $2.51 million, likely in anticipation of forthcoming reimbursements to FTX clients and creditors, particularly with the bankruptcy estate preparing for disbursements.
With a judge recently approving the repayment plan in the FTX insolvency case, Alameda Research’s wallet is depositing 143,770 Worldcoin coins every fortnight.
In affirmation, John J. Ray III, the current CEO of FTX, stated,
“Moving forward, we are ready to refund 100% of bankruptcy claim amounts plus interest for non-governmental creditors through what will become the most extensive and intricate bankruptcy estate asset distribution in history.”
That said, if FTX and Alameda persist with this refund strategy, it could trigger further substantial transfers of altcoins to major exchanges such as Binance and OKX.
Following the recent round of Worldcoin sales to Binance, Alameda’s wallet currently holds 23.44 million WLD tokens. SpotOnChain data suggests that at the current pace, it might take approximately three years to completely divest them.
Insights from On-Chain Metrics
To corroborate the speculations on selling pressure, CryptoCrypto analyzed data from IntoTheBlock, revealing that a significant majority (79%) of WLD holders possessed tokens valued below their purchase price at the time of analysis, indicating that they were “out of the money.”
In contrast, a smaller segment (12.02%) held WLD tokens valued above their purchase price, marking them as “in the money.”
This inclination indicated bearish sentiment or an ongoing downward price trend for Worldcoin, attributable to Alameda Research’s activities.