Top AI crypto tokens like Venice (VVV), Worldcoin (WLD), and NEAR Protocol (NEAR) have retreated sharply from their year-to-date highs following key negative news in the industry.
VVV, WLD, and NEAR prices have sunk by 37%, 50%, and 40%, respectively, from their year-to-date highs, erasing millions of dollars in value. Venice is a key player in the AI industry because it operates a platform that allows users to access Grok, Claude, and other models privately.
Worldcoin is also seen as an AI token because it is in the Human Verification industry, which will become essential as AI agents take shape. NEAR Protocol runs Near AI, which is a major marketplace for AI agents. It also operates IronClaw, an AI agent that connects to customers’ tools and runs other workflows.
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These tokens are falling after SpaceX’s recent retreat following the much-anticipated initial public offering (IPO), which raised $85 billion at a $1.75 trillion valuation. After initially rising, the stock has plunged by over 30% from its post-debut peak, losing more than $800 billion in value.
SpaceX is a top player in the AI industry because of its xAI business, which includes Twitter and Grok. As such, weakness in its stock has disrupted the ongoing AI momentum, which also helps explain why top stocks like Nvidia and AMD have pulled back.
In another major development, OpenAI is reportedly considering delaying its initial public offering amid fears that its valuation will not reach $1 trillion. After being in a pole position, the company’s growth has slowed, cash burn has increased, and it has lost market share.
A recent report showed that its market share dropped below 50% for the first time ever. Anthropic, on the other hand, has continued to gain market share in the past few months, helped by its innovation and business approach.
To a large extent, Anthropic has focused on its innovation and saving cash. For example, it uses lower-cost chips, while OpenAI has focused on the expensive Nvidia chips.
In another blow to the AI industry, OpenAI limited new AI models to “trusted partners” after the US government requested it. It said:
“We don’t believe this kind of government access process should become the long-term default. It keeps the best tools from users, developers, enterprises, cyber defenders, and global partners who need them.”
On the positive side, Anthropic’s Mythos 5 AI model has been cleared by the US for wider use. This is a major victory for the AI industry as the government recently prevented the company from selling its products abroad.
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