Worldcoin price has dropped 87% from its all-time high.
Cryptocurrency is affected by large transactions made by Alameda Research.
The price of WLD has fallen by 87% since its all-time high in March, when it reached $11.8 per unit. Today, the asset is trading at just $1.3, touching a price not seen for a year.
This sharp drop threatens to push it out of the top 100 cryptocurrencies by market capitalization, while it remains in 93rd place.
The sharp decline has been driven by several factors, starting with the bearish trend of bitcoin (BTC), which has dragged down almost all altcoins.
Bitcoin, the market's leading digital currency, has seen an 8% drop in the past week alone, exacerbating the situation. It should be noted that September has historically been a difficult month for Bitcoin, and that is reflected in the rest of the market.
WLD token movements and constant scrutiny affect the project
Another important factor is the high inflation of the WLD token. This quality makes the token unattractive to long-term investors, who prefer to avoid assets that tend to depreciate over time.
The situation is aggravated by the recent move by Alameda Research, the sister company of the bankrupt exchange FTX.
According to data from Spot On Chain, since August, Alameda has deposited 698,312 WLD, valued at $1.13 million, in small batches through the Binance exchange, likely in order to pay off its creditors.
This increase in supply could be putting additional pressure on the tokenâs price. However, Alamedaâs top holdings include 98.86 million BitDAO (BIT), valued at $78.8 million, and 24.3 million WLD, equivalent to $36.2 million, indicating that WLD remains a key part of its portfolio.
Added to this are ongoing questions about Worldcoinâs business model, which uses a device called âOrbâ to scan usersâ irises and verify their identity. In exchange, these users receive a âbasic incomeâ paid in WLD tokens.
However, this method has been criticized by privacy experts, who argue that the collection of biometric data is excessive for the intended purposes, and point to the lack of transparency surrounding the future use of this data, including the possibility that it may be sold or used for commercial or surveillance purposes.
The controversy surrounding Worldcoin has led to the project, founded by Sam Altman, co-creator of ChatGPT, being investigated in several Latin American countries such as Chile, Colombia, Ecuador, Argentina, and most recently, Mexico.
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