Alameda Research, the embattled cryptocurrency trading firm founded by Sam Bankman-Fried, saw its investment in the Worldcoin project grow by more than $50 million this week as the price of the WLD token achieved new all-time highs.
According to on-chain data, Alameda holds around 25 million WLD tokens currently valued at $186 million, representing a sizable portion of the firm’s remaining crypto holdings.
The WLD price rose by over 30% in the last 24 hours to hit $7.9788 on Monday, its highest price yet. This surge added $50 million to the value of Alameda’s large Worldcoin position and took the total value of the firm’s WLD holdings to a record $186 million.
One analyst tied the remarkable price increase to strong buying pressure from whales, including one wallet that withdrew 2.09 million WLD from Binance, causing a 25% price spike.
In addition, renewed hype around AI technology following the recent release of OpenAI’s Sora AI platform, a founder and early backer of which was Worldcoin creator Sam Altman, seem to have boosted sentiment around the WLD token.
Worldcoin aims to build a global, privacy-preserving digital identity system and its native WLD token is an integral part of that vision. As interest in AI applications grows, so too does investor interest in related projects like Worldcoin.
Alameda’s Growing Worldcoin Stake
Alameda originally acquired its large Worldcoin position through multiple funding rounds that saw the project raise over $250 million total. With WLD comprising around 33% of Alameda’s remaining crypto portfolio, the firm’s investment has significantly increased in value this week, providing a rare bright spot for the beleaguered company amid the collapse of FTX and its many ongoing legal issues.
It remains to be seen if Alameda intends to liquidate any of its WLD holdings, though doing so could boost prices even higher based on the token’s current low circulating supply.
Analyst Insights on WLD Price Rise
Technical analysts have pointed to the aforementioned whale withdrawal on Binance as a major catalyst. By taking millions of tokens off the exchange, this entity likely exacerbated short-term price pressure to the upside.
Additional buying volume driven by other players seeking to capitalize on the parabolic move then amplified gains into new all-time highs. Renewed optimism around AI from Sora’s launch also played a part by generating coverage and fresh interest in related projects in the space like Worldcoin.
Conclusion
With its partnership with Alameda bringing both funding and visibility, Worldcoin appears well-positioned long-term assuming it can successfully deliver on its identity initiatives. However, downside risks remain from macroeconomic uncertainty and potential liquidations from Alameda.
Overall, there are reasonable short-term technical targets above the $8 level given bullish momentum, but volatility may increase substantially if Alameda decides to offload large WLD holdings in an illiquid market. Continued delivery on Worldcoin’s technology roadmap will be important to sustain long duration investor interest.
