Worldcoin’s Price Surge Offers a Glimmer of Hope to Creditors of Collapsed Crypto Firms

tamir
Wed, 21 Feb 2024 11:35:18 +0000
Crypto, ticker, 3AC, Alameda Research, OpenAI, Sam Altman, Three Arrows Capital, Worldcoin

In a year fraught with challenges for creditors of the defunct investment firms Three Arrows Capital (3AC) and Alameda Research, the recent price surge of the cryptocurrency Worldcoin (WLD) has emerged as a rare beacon of hope. Co-founded by OpenAI CEO Sam Altman, Worldcoin‘s value has skyrocketed approximately 140% in the past week. The rally was notably spurred by OpenAI‘s announcement of its new text-to-video application, Sora.

Despite the momentum slightly waning in the past 24 hours, with an 11% drop to $6.81 at the time of reporting, the cryptocurrency had previously achieved a record high of $7.95. This upswing has notably benefited the portfolios of its two major stakeholders, 3AC and Alameda Research, the affiliated company of the now-defunct crypto exchange FTX. Both entities had succumbed to the tumultuous crypto market downturn in 2022.

Teneo, the Singapore-based liquidator for 3AC, possesses approximately 75 million WLD tokens, valued around $520 million. Meanwhile, Alameda Research’s holdings amount to 25 million tokens, with an estimated worth of $173 million. Worldcoin did not respond immediately to inquiries for comments regarding the price surge.

Su Zhu, co-founder of 3AC, also remarked on the price increase of Worldcoin via X.

Worldcoin launched in July 2023, introducing a novel concept where individuals’ eyeballs are scanned using a device called an “orb” to create a unique digital identity or World ID. This ID serves as a “proof of personhood,” enabling users to receive Worldcoin tokens as a reward for their participation. Despite sharing a co-founder with OpenAI, Worldcoin and OpenAI do not have a formal connection.