- Worldcoin (WLD) saw a sharp price surge following the release of OpenAI’s new AI model, with its value spiking 16% to a high of $1.61.
- Despite excitement over the AI-driven price increase, concerns over Worldcoin’s tokenomics persist, with critics warning of potential WLD volatility.
WLD, the native cryptocurrency of Sam Altman’s Worldcoin project, experienced a sharp price increase after the release of the AI firm’s new AI model, o1. This new artificial intelligence model introduces improved reasoning capabilities and is designed to handle complex tasks. Hence, the latest launch has garnered attention across various industries, including the crypto arena.
The announcement has had a noticeable effect on the crypto market, particularly for AI-related tokens like Worldcoin. Worldcoin saw its value rise significantly, with a spike of 16% shortly after the launch was announced. It even attained a high of $1.61 today. The latest development comes at a time when Worldcoin has been facing legal hurdles, per the CNF report.
Though the price has since stabilized, it still reflects a notable 4.69% increase, trading at $1.48 as of writing. Also, the daily trading volume for WLD has surged by 121%, more than $204 million. This rise highlights the impact of technological innovations in AI on related crypto markets. Moreover, the relationship between Worldcoin and OpenAI has drawn increased interest due to Altman’s involvement in both companies.
Altman expressed his excitement for OpenAI’s new model, calling it “the beginning of a new paradigm” for artificial intelligence. He further emphasized that these models excel in multi-step tasks and complex problem-solving, making them valuable tools across numerous fields.
Crypto Community Questions Worldcoin’s Tokenomics
However, despite the enthusiasm around AI advancements, Worldcoin’s tokenomics continue to raise concerns within the crypto community. One of the main points of contention is the controlled supply of WLD tokens. Currently, only 434 million tokens out of a total supply of 10 billion are in circulation.
The gradual release of additional tokens, which started on July 24, is expected to increase by 2 million per day. At current prices, it is now introducing around $3 million worth of tokens daily. This slow-release mechanism has sparked debates about its long-term effects on the token’s market value. Thus, market analysts argue that the low circulating supply, combined with the steady influx of new tokens, could lead to significant WLD price volatility.
Moreover, ZachXBT, a well-known on-chain analyst, and other critics have voiced skepticism over Worldcoin’s tokenomics. Some have gone as far as to describe the token’s structure as a “slow rug” due to the potential for sharp price declines over time.
Marius Capital, an investment firm, has also weighed in on the situation, warning investors of the risks associated with Worldcoin’s pricing dynamics. “WLD has the worst tokenomics right now,” Marius Capital wrote in a post on X (formerly Twitter). Additionally, the firm predicted short-term price pumps followed by declines, noting that “for long-term price forecast, WLD to $0.1 is programmed.”
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