Worldcoin’s Surge Provides Relief for Creditors of Three Arrows Capital and Alameda Research
In a difficult year for creditors of bankrupt investment firms Three Arrows Capital (3AC) and FTX’s trading arm Alameda Research, the recent surge in Worldcoin (WLD) has brought some solace. This cryptocurrency, associated with the crypto project co-founded by OpenAI CEO Sam Altman, has experienced a significant 188% increase in value over the past two weeks. The rally was fueled by OpenAI’s announcement of the Sora text-to-video application, which propelled the AI-backed token into the top 100 cryptocurrencies on the market.
Worldcoin Rally Bolsters Three Arrows And Alameda Research
A recent report from Bloomberg reveals that Three Arrows and Alameda Research have benefited greatly from the surge in Worldcoin. Three Arrows’ liquidator, Teneo, currently holds approximately $520 million worth of WLD tokens, while Alameda’s known addresses possess $173 million worth of tokens. The rally in Worldcoin has provided a significant boost to these creditors who faced challenges during the recent crypto market downturn.
Thomas Braziel, co-founder and managing partner of distressed asset investment firm 117 Partners, emphasized the positive impact of Worldcoin’s rally on the creditors. Braziel stated that “the rally in the token is a huge home run for the creditors of both the bankrupt firms, especially for 3AC.” This rally has been particularly beneficial for Three Arrows as it helps revitalize its venture investments book after losing most of its Bitcoin (BTC).
WLD’s Price Retracement
Worldcoin, launched in July, introduces a unique approach to identity verification using a device called an “orb” to scan individuals’ eyeballs and generate a digital identity known as World ID. Participants earn Worldcoin tokens by participating in the ecosystem. It’s important to note that although Worldcoin and OpenAI share a founder in Sam Altman, they are not formally connected.
Despite experiencing a retracement of over 12% in the past 24 hours, with a current trading price of $6.42, WLD has still gained an impressive 147% over the past thirty days. The ongoing advancements in artificial intelligence contribute to growing optimism about the token’s upward trajectory. This positive trend may also support FTX’s holdings in Alameda Research and Three Arrows Capital, helping these companies navigate their bankruptcy and legal challenges.
Featured image from Shutterstock, chart from TradingView.com
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