As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I can’t help but feel a sense of déjà vu when reading about Alameda Research selling off Worldcoin (WLD) tokens. The continuous sell-off by Alameda is reminiscent of the proverbial king who has no clothes, and it seems that some investors are caught up in the same game of follow the leader.
The cryptocurrency project Worldcoin, which was co-founded by the CEO of OpenAI, Sam Altman, has experienced a 6% decrease in its token’s value due to ongoing sales by Alameda Research. Some financial experts predict that the price of Worldcoin (WLD) might stay stable for a while before regaining its upward trend.
Alameda Goes On A Worldcoin Sell-off
According to a recent report from on-chain data analysis firm SpotOnChain, it appears that Alameda Research has been moving some of its Wrapped Litecoin (WLD) holdings off their balance for the past two months. Specifically, since early August, Alameda’s sister company FTX has transferred approximately 1.56 million WLD tokens to Binance.
Every week since August 9th, the company has distributed approximately 143,770 WLD tokens, valued at around $2.51 million. These tokens are sold in ten equal batches at an average price of $1.6. This information was announced just two days after US Bankruptcy Judge John Dorsey approved FTX’s repayment plan.
1) The authorization grants the cryptocurrency platform to distribute crypto assets worth between $14.7 billion and $16.5 billion to its customers, representing their recovered holdings.
It’s been proposed that the recent drop in prices might be related to FTX’s upcoming debt repayment schedule, which could potentially lead to more selling from associated companies. According to SpotOnChain’s findings, Alameda’s digital wallet contains approximately 23.44 million WLD tokens, valued at roughly $43 million.
Given the present pace of sales, it might require more than three years to entirely liquidate Alameda’s Worldcoin assets. Moreover, there could be increased selling pressure on other cryptocurrencies due to actions taken by the company.
This wallet contains approximately $98.8 million worth of various cryptocurrencies such as Stargate Finance (STG), Mantle (MNT), and BitDAO (BIT). There are around 100.9 million STG, 1.78 million MNT, and 98.86 million BIT in this wallet. Currently, the company owns about $68 million worth of BIT, which may begin to be sold in November as the three-year agreement with BitDAO not to sell ends.
WLD Price Reacts To The News
After the sell-off was announced, Worldcoin experienced a 6% drop in its daily value. This caused the token’s price to fall from $1.98 down to the $1.77 support level over the past 24 hours. In other words, there was a 4.5% decrease in Worldcoin’s performance over the last two weeks.
In late September, the value of the cryptocurrency experienced a significant 31% increase over the course of a week, following news that Worldcoin was expanding into three additional nations: Guatemala, Poland, and Malaysia. According to NewsBTC, this growth was due to Worldcoin’s announcement that it would be extending its World ID services to these countries.
Over the past week, the token’s price surged beyond the $2 threshold due to positive news and the crypto market’s upswing. However, this level was briefly maintained before facing difficulties. Since then, the token has been grappling to reestablish its critical support area, fluctuating between approximately $1.58 and $2.03.
crypto expert Yuriy of BikoTrading observed that following the drop on October 1st, Worldcoin’s (WLD) price revisited the significant $1.5 mark and then jumped approximately 33% from this point. As the token attempts to challenge the $2 resistance level again, Yuriy anticipates it will fluctuate within a fresh range of roughly $1.8 to $1.98 for several days before potentially breaking beyond this range.
Currently, the stock price for WLD stands at $1.8, marking a 8.7% rise over the past week and a significant 27.4% climb in the last month.
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2024-10-10 14:10