Worldcoin (WLD), an AI token, is seeing heightened selling pressure as Alameda Research dumps millions to Binance.
Sam Altman’s AI-crypto project, Worldcoin, has been facing significant challenges recently, particularly due to large-scale token dumps by Alameda Research.
On-chain data revealed on Wednesday that the market maker has continued selling substantial amounts of the AI token, causing investor anxiety as WLD’s price dropped by nearly 5% in intraday trading.
Crypto enthusiasts are now speculating about the token’s future in light of these market statistics and the bearish sentiment surrounding the recent selloffs.
Worldcoin Under Pressure Due to Alameda Research’s Massive Sell-offs
Worldcoin has faced heavy selling pressure as Alameda Research, a prominent market maker, has consistently offloaded large amounts of WLD tokens to Binance, one of the leading crypto exchanges.
On-chain data from Spotonchain showed that Alameda Research has been dumping 143,770 WLD to Binance on a weekly basis for the past two months.
Since August 9, the firm has sold 1.56 million tokens, valued at $2.51 million, to Binance in ten separate batches, with an average deposit price of $1.605.
Currently, Alameda still holds 23.44 million tokens, worth approximately $43 million.
At this rate, offloading their remaining holdings would take three years, potentially exerting ongoing downward pressure on WLD’s price.
Additionally, another of Alameda’s significant holdings is MNT, previously known as BIT, which could also see selloffs once the firm’s 3-year no-sale agreement with BitDAO concludes in November.
WLD Price Drops by 5%
In the past 24 hours, Worldcoin’s price has fallen nearly 5%, settling at $1.86. The intraday low and high were recorded at $1.83 and $1.98, respectively.
The continuous selling by Alameda Research has reinforced a bearish outlook for the token, sparking concern among investors.
Coinglass data also highlighted a 10% drop in the token’s futures open interest (OI), bringing it down to $170.83 million.
Additionally, derivatives trading volume fell by 31% in the past day to $754.13 million, indicating a sharp decline in investor interest.
Combined with Alameda’s substantial selloffs, these market indicators suggest that WLD is currently riding a bearish trend across the broader crypto market.
Possible Future Rally for WLD
Despite the negative outlook, a recent price analysis of WLD hints at the possibility of a 400% rally.
This optimistic prediction is driven by speculation that Microsoft may acquire OpenAI, another leading AI firm led by Sam Altman.
Crypto analysts believe such a move could potentially boost Worldcoin’s prospects and drive its price higher.
