Worldcoin’s WLD Token Surge: Potential Boon for Three Arrows Capital, FTX Creditors

Crypto News- In just one week, the value of Worldcoin’s WLD tokens has surged by an astounding 200%, offering a glimmer of hope to a significant group of investors – the creditors associated with the bankrupt fund Three Arrows Capital (3AC). Su Zhu, the founder of 3AC, shared his thoughts on the matter on Monday, shedding light on the potential benefits accruing to these creditors.

However, amidst this remarkable surge, a sizable challenge emerges with a massive token unlock worth $165 million scheduled to kick off this week, with the unlocking period extending until Feb. 26, as per data from Token Unlocks.

Worldcoin’s WLD Token Surge: Potential Boon for Three Arrows Capital, FTX Creditors

Zhu expressed a sense of detachment regarding the potential outperformance of WLD tokens, remarking, “I won’t directly benefit from WLD’s success, but I take solace in knowing that 3AC creditors hold one of the largest positions in WLD globally.” He also addressed the criticism he faced for the worldcoin investment in 2021.

Worldcoin, a contentious project aiming to provide digital IDs and tokens in exchange for scanning individuals’ eyes, has stirred up controversy. Token distribution hinges on involvement timing in the project’s rollout, spread over two years, with an immediate 10% accessible in a wallet app generated by the Orb.

3AC’s participation in a $25 million funding round for Worldcoin’s developer, Tools For Humanity, shed light on the firm’s valuation at $1 billion, as per data from funding tracker Dealroom. While the exact WLD holdings of 3AC remain undisclosed, court documents indicate that its founders owe creditors over $1.5 billion due to investment losses.

Data from SpotOnChain reveals that wallets linked to Bankman-Fried’s company received WLD tokens worth over $185 million in August 2023. Additionally, blockchain transaction history indicates that the same Worldcoin address transferred tokens ranging from $35 million to $170 million to several other addresses in the same month.

The surge in WLD tokens aligns with the recent launch of Sora, a text-to-video generator developed by AI developer OpenAI. Notably, Worldcoin’s parent company shares the same founder as OpenAI, Sam Altman, leading crypto traders to perceive WLD as a bet on Altman’s achievements.

With a nearly 50% surge in the past 24 hours alone, WLD tokens have reached unprecedented highs, surpassing $7 as of Monday, driving Worldcoin’s diluted valuation to an astronomical $75 billion.