Worldcoin (WLD) Slumps 5% as Elon Musk Sues OpenAI

In the wake of Elon Musk’s legal action against OpenAI and its CEO, Sam Altman, Worldcoin (WLD) has witnessed a notable 5% drop in value within the past 24 hours. The lawsuit, filed by Musk in San Francisco, alleges breaches of contractual agreements dating back to 2015.

Elon Musk’s Lawsuit against OpenAI and Sam Altman

Musk, the visionary entrepreneur behind Tesla and SpaceX, was a co-founder of OpenAI in 2015 but later resigned from its board in 2018. He remains a strong voice in the crypto space and has been known to make bold statements.

The lawsuit centers on OpenAI’s purported shift towards profit-driven objectives, which Musk contends violates earlier agreements. Notably, as reported by Reuters, OpenAI’s alleged efforts to maintain secrecy surrounding the design of GPT-4 are cited as key points of contention.

The lawsuit also alleged that Altman, together with OpenAI’s co-founder Greg Brockman, initially approached Musk with the intention of establishing a non-profit, open-source company aimed at advancing artificial intelligence technology for the betterment of humanity.

Musk’s lawyers argued in the lawsuit that the company, supported by Microsoft, deviated to prioritize profit contradicting this agreement.

Worldcoin’s WLD Token Sensitivity

Worldcoin’s WLD token, closely associated with OpenAI due to Altman’s involvement as a co-creator and board member, has historically demonstrated sensitivity to news involving Altman or OpenAI. Despite lacking direct correlation, WLD often experiences market volatility in response to developments related to Altman or OpenAI.

Altman who maintains close ties with OpenAI and Worldcoin, in September 2023 discussed the challenges pertaining to various aspects of the project’s vision, including operational obstacles and the manufacturing of Worldcoin’s patented hardware component, referred to as orbs.

Impact on Worldcoin in Crypto Market Cap

While WLD has experienced a decline of over 5% in value, dropping as low as $7.28 before recovering, it is important to note that the broader cryptocurrency market capitalization has seen a comparatively modest decrease of less than 1.5% during the same period.

Worldcoin had experienced a 106% surge within a mere seven-day span in late February. primarily fueled by the introduction of OpenAI’s Sora.

This bullish momentum is expected to persist for WLD, which recently attained one million daily active users for its World App wallet. Given the ongoing excitement surrounding AI, Worldcoin might witness significant upswings throughout 2024 depending on how Sam Altman handles the lawsuit by Musk.