Worldcoin (WLD) Price Drops 6% as Alameda Research Continues to Sell Its Holdings

Worldcoin, the crypto project co-founded by OpenAI's CEO Sam Altman, recently saw its token's price drop over 6% following Alameda Research's continued sales.

Crypto on-chain data analysis firm SpotOnChain recently reported that Alameda Research has been sending part of its Worldcoin (WLD) holdings to crypto exchanges over the past two months.

According to the firm’s report, Alameda has sent 1.56 million WLD tokens to Binance from its wallet since early August. The firm has sent around 143,770 WLD tokens, worth around $2.51 million, every week since August 9, selling the tokens in 10 batches at an average price of $1.6.

The news comes two days after US Bankruptcy Judge John Dorsey approved FTX's repayment plan. The approval will allow the crypto exchange to pay customers between $14.7 billion and $16.5 billion in recovered crypto assets. Alameda received around $8 billion of FTX users’ misappropriated funds, which were allegedly used for the fund's trading operations.

Some might suggest that the sell-off is linked to FTX's repayment plan, which is expected to begin soon and could indicate further selling pressure from the companies.

According to SpotOnChain's report, Alameda's wallet still holds 23.44 million WLD tokens, which are valued at around $43 million. At its current selling rate, it could take over three years to completely unload Alameda's Worldcoin holdings.

Additionally, other altcoins could face selling pressure from the company. The wallet holds $98.8 million in other cryptocurrencies, including 100.9 million Stargate Finance (STG), 1.78 million Mantle (MNT), and 98.86 million BitDAO (BIT), now MNT. The company's BIT holdings, valued at $68 million, could start being sold in November, as the 3-year no-sale commitment with BitDAO ends.

Following the sell-off report, WLD saw a 6% dip in the daily timeframe. The token's price dropped from the $1.98 mark to the $1.77 support zone in the last 24 hours, indicating a 4.5% decline in WLD's biweekly performance.

The cryptocurrency registered a remarkable 31% weekly surge in late September after Worldcoin announced its expansion to three new countries. As reported by NewsBTC, the crypto project revealed that it was bringing its World ID services to Guatemala, Poland, and Malaysia.

The news, along with the crypto market's recovery, pushed the token's price above the $2 mark, which was held momentarily. Since then, the token has struggled to reclaim the key support zone, hovering between $1.58-$2.03 levels for the past week.

Crypto analyst Yuiry from BikoTrading noted that WLD's price retested the $1.5 crucial level after October 1's drop, bouncing around 33% from this level. As the token continues trying to retest the $2 resistance level, the analyst expects it to move within its new $1.8-1.98 range for a few days before breaking above it.

At the time of writing, WLD is trading at $1.8, up 8.7% and 27.4% in the weekly and monthly timeframes, respectively.