Amid ongoing scrutiny from US regulatory authorities, Alameda Research has shifted 143,770 Worldcoin (WLD), around $300Kt, o Binance, the largest centralized exchange (CEX).
According to the on-chain analytics platform, Spotonchain, the sister company of the bankrupt FTX, has transferred 2M WLD ($3.46M) in batches to the exchange since August as part of its move to repay creditors.
However, the latest development raised concerns about the likelihood of the token’s value dropping as Alameda Research has sold off substantial amounts of its WLD holdings.
Alameda Research deposited 143.77K WLD ($297.6K) $WLD to CEX 5 hours ago.
Since Aug 9, they have deposited 2M WLD ($3.46M) to #Binance in multiple small batches, likely to repay creditors.
They still have 23.01M WLD ($47.6M) left and may require over 3 years to fully liquidate… pic.twitter.com/MMXNPG1F2o
— Spot On Chain (@spotonchain) October 30, 2024
FTX’s Debt Repayment Path
In a continuous effort to repay its significant debt, FTX and its affiliate have been divesting assets since their bankruptcy filing in 2022. Selling its WLD token holdings has been one of the company’s main debt repayment strategies.
Despite the selloffs, Alameda Research still has 23.01 million WLD, worth over $47.6 million, in its possession. Per Spotonchain analysis, it could take Alameda more than three years to liquidate this amount of WLD at the current rate.
The financial mismanagement of former CEO Sam Bankman-Fried (SBF) and his colleagues was a major factor in FTX’s demise. Due to this financial misconduct, SBF and his associates received diverse prison sentences.
One of these associates, Caroline Ellison, the former CEO of Alameda, is currently serving a two-year jail sentence after her court verdict.
WLD’s Price Action
Following the latest selloff, WLD’s trading volume decreased by 17.48% to $210.35 million over the past day. As FTX’s gradual liquidation moves forward, this decline in activity may indicate waning interest or market caution.
Furthermore, WLD’s market value is currently $1.22 billion, but the cryptocurrency is still 82.36% below its peak value of $11.82. According to data from CoinGecko, WLD is now trading at $2 after hitting a 24-hour high of $2.14.
WLD’s price has gained 3.2% in the last 30 days, but it’s down 8.9% in the last week, per the same data. With Spotonchain’s projection that Alameda Research may take over three years to liquidate its remaining WLD holdings fully, this gradual liquidation could negatively affect the asset’s price stability.
This liquidation rate would also cause a substantial increase in the Worldcoin’s circulating supply.
WLD’s 24-hour Price Chart. | Source: Coingecko