Worldcoin [WLD] has been a standout performer in the cryptocurrency market recently, generating significant bullish momentum and posting double-digit gains.

However, the project, which combines artificial intelligence with cryptocurrency, now faces challenges from a sustained sell-off by Alameda Research.

Alameda Research adds to selling pressure

Blockchain data shows that a major market player, Alameda Research, is actively liquidating its WLD holdings. In fact, this caused the token’s price to drop by nearly 5% in a single day.

According to CoinMarketCap, Worldcoin has fallen 5.20% in the past 24 hours and is trading at $1.72 on the charts. This has raised concerns among investors about the long-term viability of the token.

All this happened because crypto wallets associated with the defunct FTX exchange and its sister company Alameda Research have been actively transferring large amounts of WLD.

what else?

Specifically, over the past two months, Alameda Research’s on-chain wallet has moved 1.56 million WLD tokens to Binance, executing 10 separate transactions at an average price of approximately $1,605.

The sell-off generated approximately $2.51 million in proceeds, likely in preparation for upcoming repayments to FTX customers and creditors, especially as the bankruptcy estate prepares to pay out.

The plan was recently approved by the judge overseeing FTX’s bankruptcy case, and currently Alameda Research’s wallet is receiving 143,770 Worldcoins every two weeks.

If FTX and Alameda continue to implement this compensation strategy, it could lead to further large-scale altcoin migration to major exchanges such as Binance and OKX.

After the latest Worldcoin sale to Binance, Alameda’s wallet now holds 23.44 million WLD tokens. At the current rate, this could take about three years to liquidate.

What do on-chain metrics show?

Further supporting speculation of selling pressure, the vast majority (79%) of WLD holders hold tokens worth less than their purchase price at press time, indicating they are “at a loss.”

In contrast, a smaller portion (12.02%) hold WLD tokens worth more than they purchased them for, making them “profitable.” This suggests bearish market sentiment or a continued decline in Worldcoin price.