Worldcoin Price Spikes 26% After OpenAI CEO Departure, Is WLD Surge Shortlived?
The price of Worldcoin’s WLD token surged 26.5% this week to a high of $2.65, sparked by the high-profile departure of OpenAI CEO Sam Altman. Altman was recently ousted from the artificial intelligence research company and holds an advisory role with Worldcoin developer Tools for Humanity.
The abrupt rally left many investors wondering what exactly prompted WLD’s breakout. On-chain analyst Lookonchain noted large deposits of WLD to exchanges just before the spike, indicating potential insider knowledge. Over 1.83 million WLD worth $4.47 million was moved in the span of 7 hours.
Reasons for Worldcoin rally remain uncertain
While the reasons for the rally remain uncertain, Worldcoin’s ties to Altman appear to be a key factor. Altman’s forced resignation from OpenAI made headlines in tech circles this week.
As an advisor to Worldcoin, his shift away from OpenAI may have fueled speculation around increased involvement with the cryptocurrency project.
Some perceive Altman’s departure from OpenAI positively for Worldcoin, believing it could mean more time dedicated to Tools for Humanity. This renewed confidence in Worldcoin’s technology and development team may be buoying the price.
Launched in 2021, Worldcoin aims to distribute crypto globally while verifying users’ unique human identity through iris scans. The futuristic initiative hit roadblocks due to privacy concerns over the iris scanning.
But with Altman’s OpenAI exit, investors may anticipate a reboot at WLD. The 26% price jump could represent bets on Altman devoting his iconic startup experience to realizing Worldcoin’s ambitious vision.
At the same time, Worldcoin’s underlying technology and use cases remain largely conceptual. The token is not yet widely used and could simply be riding the coattails of Altman’s fame thus far.
However, the rally seems shortlived as the price plummeted from its 24-hour high by 6.7%. CoinGecko data shows that WLD is trading at $2.28 at press time.