Key Insights:
- Sam Altman’s $7 Trillion funding ask boosts Worldcoin’s price.
- Price gains 40% in a single day.
- Likely to crash if Alameda is made to sell its stake amid bankruptcy.
FTX subsidiary Alameda research, which is also in bankruptcy proceedings owns a 19% share of the total token supply of Worldcoin. Both the companies have been under bankruptcy proceedings for almost a year and a quarter now.
As per CoinMarketCap, the total supply of Worldcoin (WLD) is around 10 Billion tokens which indicates Alameda Research may have around 1.9 Billion tokens.
Worldcoin’s current circulating token supply is just around 1.31% of its total supply i.e., 130 Million tokens.
Table of Contents
Price Analysis ($WLD)
$WLD has become almost 3x of its initial price in a month (Jan 19-Feb 19, 2024).
The cryptocurrency has gained almost 39% price in a single day on 19 Feb 2024 and 140% price in a week.
On the same day, Worldcoin’s market cap was just under $1 Billion.
Though it may sound lucrative as of now, but the price has climbed too high to be bought into. With my experience, I suggest to avoid Worldcoin because the prices will cool down eventually and if you buy now, then you may experience a loss after price settles down.
Reason for High Growth
First reason of such high growth is Worldcoin’s wallet users touching 1 Million daily users on Feb 17, 2024.
Another reason why Worldcoin is witnessing such phenomenal growth is because of Sam Altman, its founder and Open AI’s co-founder seeks to borrow $7 trillion to build an advanced microprocessor manufacturing and development facility that would not only rival the likes of Nvidia but also aims to develop human-based nervous system chips, similar to Neuralink (by Elon Musk).
The logic of the market seems to be that if he gets a fund of $7 Trillion or even lesser, his other ventures too will get some of the funds through trickle down.
About Worldcoin
Worldcoin was launched by Sam Altman, co-founder of OpenAI. It is a cryptocurrency project with the the goal to establish a global identity and financial network which will help in distinguishing humans from bots. The platform was launched during a time when high number of bot users were discovered in various social media.
It combines the $WLD token, an anti-AI token with Captcha, and World ID. The World ID was to be generated after scanning the iris of a person and hashing the same information to obtain a privacy–centric digital identity. Since this identity will be on the blockchain it would be accessible for instant verification and will aim to enhance human dominance on the internet.
The project uses Ethereum’s blockchain. A significant innovation is the use of biometrics, specifically iris scans, to authenticate users as humans, utilizing a device named the Orb.
However, the company faces privacy concerns over its biometric data collection, particularly from prominent figures like Edward Snowden who criticized the potential for creating a global database of iris scans. The project has encountered regulatory scrutiny and bans in countries like UK, Germany, France and Kenya, raising questions about its real intentions.
