In July, according to EmberCN, when Worldcoin (WLD) launched, it lent a collective sum of 100 million WLD to five market makers to enhance liquidity. According to the terms, these market makers must either return the coins or buy them at a price ranging between $2 to $3.12 by the conclusion of a three-month term, which is slated for October 22. With the date less than a month away, a close examination of the recent on-chain activities and the current WLD holding statuses of these market makers unveils notable insights.
Initially allocated 28 million WLD, Wintermute now holds 14.16 million WLD on-chain. In the recent fortnight, there has been a retrieval of 1.93 million WLD from Binance. This reflects a possible preparation towards fulfilling the loan settlement terms. The retrieval also suggests a level of activity that might be aimed at either returning the borrowed sum or purchasing them as per the agreed price range.
Amber Group started with an allocation of 24 million WLD, but its current on-chain holdings have dwindled to 4.5 million WLD. In July, a hefty sum of 19.5 million WLD was transferred to various centralized exchanges (CEX), with no recent retrievals noted from these platforms. The large transfer to exchanges could have been a move to take advantage of possible higher market prices, but the lack of recent retrievals from CEX might raise queries on their strategy towards the upcoming settlement deadline.
Similar to Amber Group, Flow Traders was allocated 24 million WLD. They now hold 8.5 million WLD on-chain. Noteworthy is their recent activity where they retrieved 2.45 million WLD from multiple CEX in the last two weeks. This activity could be perceived as a step towards amassing the necessary WLD for either return or purchase as per the loan agreement.
With an initial allocation of 12 million WLD, Auros Global’s on-chain holdings have significantly reduced to 0.5 million WLD. They transferred 11.5 million WLD to various CEX in July, with no recent activity of retrievals from these platforms. The substantial reduction in on-chain holdings and the absence of recent retrievals may prompt questions regarding their strategy as the loan settlement date approaches.
The observed data exhibits a range of strategies among the market makers as the loan settlement deadline looms. Some market makers have initiated retrievals from exchanges, possibly in preparation for the return or purchase of the borrowed WLD, while others have not shown such movements. These actions are critical for WLD stakeholders to monitor as they could potentially impact the market dynamics of Worldcoin.
The unfolding scenario presents a significant juncture for Worldcoin and its market makers. The actions of these market makers could either fortify or challenge the market stability of WLD, especially as the settlement date nears. The anticipation builds among the WLD community and the crypto market at large as to how these market makers will act – whether they will return the borrowed WLD or opt to purchase them, and how such actions would subsequently affect the market dynamics of Worldcoin.
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