Cryptocurrency project Worldcoin, supported by OpenAI CEO Sam Altman, has recently experienced a surge in value due to the impressive financial report from Nvidia and the release of OpenAI’s new model Sora. Today, Worldcoin reached a new high of $8.4, an increase of 23% in the past 24 hours.
In the past week, Worldcoin has seen a staggering 175% increase in value, reaching a market capitalization of over $1.1 billion and ranking as the 78th largest cryptocurrency.
The initial surge in Worldcoin’s value may be attributed to the release of OpenAI’s new artificial intelligence model, Sora, which generates high-quality short videos based on user input. The market may have transferred its expectations for OpenAI and Sam Altman to Worldcoin, resulting in the rapid surge in value.
Furthermore, today’s increase in value may be attributed to Nvidia’s unexpected financial report, which has led to a rise in value for all AI-related concept coins and stocks.
However, it should be noted that Worldcoin and Sora are two completely different projects. Currently, there has been no announcement of any technical collaboration between OpenAI and Worldcoin. Therefore, investors should exercise caution and risk control when faced with market speculation and FOMO (fear of missing out) sentiment.
Another concern regarding Worldcoin is the centralization of token distribution. According to data from Lookonchain, the top 10 holders of WLD tokens, including the project team, centralized exchanges, and market makers, collectively hold 9.15 billion WLD tokens, accounting for 91.5% of the total supply.
Overall, the distribution of tokens is still in its early stage, and the project’s goal of achieving financial inclusion remains to be proven over time.
Additionally, it is worth noting that the bankrupt cryptocurrency hedge fund, Three Arrows Capital (3AC), holds 75 million WLD tokens, accounting for 0.75% of the total supply, approximately $579 million. The bankrupt cryptocurrency exchange, FTX’s sister company Alameda, holds 25 million WLD tokens, accounting for 0.25% of the total supply, approximately $193 million. These bankrupt companies may potentially sell off their holdings at high prices to repay debts, which could lead to selling pressure on WLD. Therefore, investors are advised to exercise caution due to the current high volatility of WLD.
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