The value of Worldcoin's WLD token has plummeted following reports of a legal dispute involving OpenAI, a closely related company.
Worldcoin's WLD Token Drops As Elon Musk Takes Legal Action Against OpenAI
WLD fell as news emerged about a lawsuit filed by Elon Musk against OpenAI and its CEO Sam Altman.
According to a filing reported by Reuters, Musk is alleging breach of contract, arguing that OpenAI and Altman breached agreements allegedly made when he was involved in founding the company in 2015.
Sam Altman, who serves as a board member and co-creator of Worldcoin, found himself involved in this legal incident.
Worldcoin, a project spearheaded by Altman, has sparked controversy with the ambitious goal of scanning individuals' eyes in exchange for a digital identity and tokens.
Often viewed as a proxy investment for OpenAI's performance, WLD has faced downward pressure due to uncertainty over the outcome of Musk's lawsuit against the AI company.
This incident underscores the connection between Worldcoin's fate and developments in the broader AI industry. Over the past year, movements in AI-related tokens have often been associated with significant developments in the AI sector.
In February in particular, chipmaker Nvidia's announcement that it beat fourth-quarter earnings estimates and OpenAI's launch of a new text-to-video product caused a surge in AI tokens.
*This is not investment advice.