Worldcoin’s Surge May Benefit Investors, But Token Unlock Raises Sell Pressure
Worldcoin’s native token, WLD, has experienced a 200% surge in the past week, potentially providing relief to investors of Three Arrows Capital and FTX. However, the upcoming token unlock could lead to sell pressure in the market.
The rise in WLD’s price can be attributed to the launch of an artificial intelligence solution by Sam Altman’s OpenAI. Altman is associated with both Worldcoin and OpenAI, which created the text-to-video tool Sora.
Worldcoin Investors Benefit
Two bankrupt crypto entities, Three Arrows Capital (3AC) and FTX, received millions of WLD tokens as early investors in Tools For Humanity, the company behind Worldcoin. The liquidator for 3AC, Teneo, currently holds 75 million WLD tokens valued at over $550 million. It is possible that they hold more tokens on unidentified wallets. 3AC and its founders owe $1.5 billion to creditors.
FTX also invested in Worldcoin and received $185 million worth of WLD tokens. These tokens were distributed across multiple wallets affiliated with FTX founder Sam Bankman-Fried.
Token Unlock and Potential Sell-Off
A token unlock is scheduled until February 26th, which will release $165 million worth of WLD tokens into circulation. This influx of tokens may result in reduced gains for investors holding bankruptcy assets.
Expansion and Scrutiny
Despite initial scrutiny from governments in Kenya and France regarding data security concerns, Worldcoin is expanding its presence in other regions such as Argentina, Singapore, and Chile. Over 200,000 Chileans have already used the project’s Orb devices to scan their eyes.
Hot Take: Worldcoin’s Surge and Future Challenges
Worldcoin’s recent surge in price has the potential to benefit investors, particularly those associated with Three Arrows Capital and FTX. However, the upcoming token unlock may induce sell pressure in the market. As Worldcoin expands its presence in various regions, it continues to face scrutiny regarding data security concerns. It remains to be seen how these challenges will impact the project’s long-term success.
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