The price of Worldcoin’s WLD token saw massive volatility this week after news broke of former OpenAI CEO Sam Altman becoming an advisor. WLD exploded to fresh all-time highs before a swift reversal that saw large deposits of the token in exchanges.
According to on-chain analytics firm Lookonchain, Worldcoin initially rallied on the high-profile Altman announcement to reach a price of $2.40. However, the euphoria quickly faded.
Within just 7 hours, major market maker GSR Capital moved around 1.83 million WLD worth $4.47 million to exchanges. Lookonchain suspects this presages significant selling pressure.
Indeed, the flood of WLD inflows to trading venues coincided with the token erasing nearly all its daily gains. The swift turn of events highlights the potential pitfalls of buying into hype-fueled spikes before sustainable confirmation.
The analysis underscores how on-chain data can provide valuable insights to gauge sentiment shifts around cryptocurrencies. While the Altman news sparked initial excitement, GSR’s transfers signaled weakness, likely prompting informed traders to sell WLD’s euphoric top.
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In crypto markets, just as quickly as FOMO can ignite rallies, profit-taking can rapidly extinguish short-term pops without fundamental backing. For WLD, its brief foray into record territory quickly gave way to selling forces per blockchain clues.
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