- Worldcoin price continued rising despite the ongoing crypto market crash.
- The rally is because of the upcoming OpenAI IPO.
- Worldcoin will tweak its tokenomics in July this year.
Worldcoin price has emerged as one of the best-performing cryptocurrencies this week. WLD token surged by 10% on Friday, bringing its weekly gains to 80%. Only Humanity Protocol, its competitor, has done better. This article explains the two main reasons why the WLD price has jumped and what to expect.
Worldcoin Price Has Jumped Ahead of OpenAI IPO and Tokenomics Revamp
The main reason behind the ongoing Worldcoin price surge is that OpenAI has already filed its IPO papers. This filing means that it may decide to go public any time from now, with many analysts predicting that it will happen by August.
OpenAI has become a major disruptor in the AI industry and was recently valued at over $800 billion. Most analysts believe that it will cross the $1 trillion market capitalization after the IPO.
OpenAI and Worldcoin are separate companies with a similar background as they Sam Altman took part in their creation. Altman is now OpenAI’s CEO, meaning that he may ultimately decide to integrate World ID on its platform. Besides, it has already been integrated into popular platforms such as Okta, Dropbox, and DocuSign.
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Worldcoin is also jumping because July is almost here. In a post on April 10, the developers said that the network will change its tokenomics substantially. Precisely, the WLD unlock rate will drop by 43% this year.
Community tokens unlock will drop by 50% from 3.2 million WLD tokens per day to 1.6 million tokens per day. TFH and team tokens unlock will drop by 32% from 1.9 million tokens and 1.3 million tokens, respectively.
WLD Price Technical Analysis
The daily chart shows that the WLD token has rebounded in the past few days. This rebound happened after it formed a double-bottom pattern at $0.2390 and a neckline at $0.3300, its highest point on April 16.
The rally also happened after it formed a large falling wedge pattern, which is made up of two descending and converging trendlines. It has now jumped above the 50-day Exponential Moving Average (EMA).
Therefore, the token will likely continue rising in the coming weeks as investors wait for the OpenAI IPO and tokenomics upgrade. It will likely retreat after these events as investors sell the news and book profits.
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