- Crypto Market in Bullish Phase
- Reasons for Worldcoin's Decline
- Strategies of Major Players and Consequences
Despite the recent growth in the cryptocurrency market, Worldcoin (WLD) has faced negative trends for 30 consecutive days.
Crypto Market in Bullish Phase
Recently, the cryptocurrency market has shown steady growth, largely driven by the Federal Reserve's recent 50 basis points rate cut. This has pushed Bitcoin to $64,000, and various altcoins such as SUI, TAO, and FET have made impressive jumps.
Reasons for Worldcoin's Decline
Worldcoin (WLD), however, shows opposite trends. Over the past 30 days, WLD has dipped by 1.02%. Analysts link this to the ongoing linear unlocking of investors' tokens, which started in late July. Major institutional investors such as Three Arrows Capital (3AC) and Alameda Research are actively selling their unlocked tokens, creating pressure on WLD's price.
Strategies of Major Players and Consequences
Three Arrows Capital, for example, received 75 million WLD through its initial investments and began selling since late July, having offloaded 2.538 million WLD worth approximately $4.06 million. Alameda Research, in turn, has been selling its 25 million WLD in parts since early August and has so far sold 1.129 million tokens worth $1.8 million. These continuous sales, combined with the bankruptcy of both institutions, are causing a supply glut that Worldcoin can't seem to shake off despite the broader market's positive sentiment.
Amid the overall growth of the cryptocurrency market, Worldcoin continues to face difficulties due to the market strategies of major institutional players. The further development of the situation will depend on the actions of these and other major investors.
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