Worldcoin’s 200% Rally Boosts FTX and 3AC Creditors Amid Token Unlock Concerns

Worldcoin’s 200% Rally Boosts FTX and 3AC Creditors Amid Token Unlock Concerns

The recent 200% surge in Worldcoin’s native token, WLD, presents a potential boon for creditors of crypto entities such as Three Arrows Capital (3AC) and FTX. However, an impending token unlock may introduce sell pressure into the market.

Worldcoin’s WLD token soared to an all-time high of $7.40 per coin on February 19, fueled by the launch of an artificial intelligence solution by Sam Altman’s OpenAI. Altman, holding key positions at both Worldcoin and OpenAI, played a pivotal role in the development of the text-to-video tool Sora, though the recent price surge of WLD appears unrelated to Sora’s launch.

Notably, early investors in Worldcoin, including bankrupt entities like 3AC, received millions of WLD tokens. 3AC’s liquidator, Teneo, is reported to hold 75 million WLD tokens valued at over $550 million following the recent price movement, potentially holding more tokens in undisclosed wallets. The defunct hedge fund, along with its founders Su Zhu and Kyle Davies, owe creditors a substantial $1.5 billion.

Similarly, FTX, the crypto exchange co-founded by Sam Bankman-Fried, reportedly invested in Worldcoin’s eyeball-scanning initiative and received WLD tokens for its early support. Wallets linked to Bankman-Fried received approximately $185 million worth of WLD tokens distributed during Worldcoin’s launch in August last year.

As investors brace for the influx of WLD tokens into the market, concerns arise regarding potential sell-offs impacting bankruptcy holdings. Token Unlocks data indicates that approximately $165 million worth of WLD tokens are set to enter circulation by February 26.

Despite its recent price surge, Worldcoin faced scrutiny upon its launch, particularly from governments in Kenya and France over privacy concerns related to Altman’s protocol. However, the project is expanding into other regions such as Argentina, Singapore, and Chile, where over 200,000 individuals have utilized Worldcoin’s Orb devices for eye scanning.

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