Altman's OpenAI Exit Sends Ripples Through Crypto: Worldcoin's WLD Faces Turbulence
The unfolding drama involving Sam Altman and OpenAI seems to have had a significant impact on the market dynamics of WLD, the cryptocurrency associated with the Worldcoin project, a venture co-founded by Altman. WLD has witnessed notable volatility in recent days, with fluctuations in its value seemingly influenced by developments surrounding Altman's status at OpenAI, as reported by analysts.
According to data from WorldCoinIndex, WLD exhibited a 9.1% increase in the last 24 hours, reaching $2.55 on Monday. Over the past week, the token recorded a substantial 31.4% rise. Despite Altman's removal as the CEO of OpenAI, he remains identified as the co-founder and chairman of Tools for Humanity, the entity behind the Worldcoin project. The surprising news of Altman's ousting from OpenAI, the organization responsible for ChatGPT, sparked discussions, and Altman has been engaged in discussions with the board in an attempt to reclaim his role.
However, on Sunday night in the U.S., OpenAI's board of directors communicated internally that Altman would not be reinstated, and Emmett Shear, former CEO of Twitch, would serve as OpenAI’s interim chief executive, according to a report by The New York Times.
Subsequently, Altman reportedly received an immediate job offer from Microsoft, one of the investors in OpenAI advocating for his return, to lead the software giant’s AI team, as revealed by Bloomberg. Microsoft's Chairman and CEO, Satya Nadella, expressed excitement about Altman and Greg Brockman joining Microsoft to lead a new advanced AI research team. The potential impact of Altman's new role at Microsoft on his position at Worldcoin remains unclear.
The market's reaction to Altman's situation at OpenAI appears to have created a trading signal for WLD, even though there is no direct link between OpenAI and Worldcoin other than Altman's association. Justin d'Anethan, head of APAC business development at Keyrock, suggested that the lack of clarity surrounding Altman's departure may lead to speculation about issues affecting WLD's valuation or governance.
Tools for Humanity, the primary developer of the Worldcoin project co-founded by Altman, encourages users to establish their online identity through a World ID obtained via an iris scan. Analysts, such as Matt Bansinelas of Glass Markets, see Worldcoin, under Altman's leadership, as a potential front-runner should government regulations mandate human verification in the realm of AI.
The impact of Altman’s fate at OpenAI on WLD's price has been noticeable. Prices experienced a more than 10% drop upon news of his removal, recovering relatively swiftly. This could be attributed to a perceived disagreement between the board and Altman rather than any specific wrongdoing, or possibly due to rumors of his potential re-hiring. Greta Yuan, head of research at VDX, anticipates further market fluctuations in the days ahead, considering Altman's prominent role as the face of Worldcoin and the ongoing developments in this situation.