Date: Sat, Sept 21, 2024, 05:00 AM GMT
While the cryptocurrency market is enjoying a bullish phase thanks to the recent 50 basis points rate cut by the Federal Reserve, which pushed Bitcoin to a high of $64,000, and helped altcoins like SUI, TAO, and FET make impressive jumps, Worldcoin (WLD) is bucking the trend. Over the past 30 days, WLD has dipped by 1.02%, struggling to gain traction despite the broader market rally.
So, what’s causing this bearish momentum for Worldcoin?
According to on-chain analyst Ember, the trouble stems from the ongoing linear unlocking of investors’ tokens, which started at the end of July. Two major institutions—Three Arrows Capital (3AC) and Alameda Research—are selling their unlocked WLD holdings, contributing to downward pressure on the token’s price.
3AC, which obtained 75 million WLD through its initial investment, has been selling the unlocked tokens since late July. So far, they’ve offloaded 2.538 million WLD, worth approximately $4.06 million. Similarly, Alameda Research, holding 25 million WLD, has been selling its portion once a week since early August. To date, they’ve sold 1.129 million WLD, valued at $1.8 million.
These consistent sales, combined with the fact that both institutions have gone bankrupt, are causing a supply glut that Worldcoin can’t seem to shake off, despite the broader market’s positive sentiment.
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