Worldcoin (WLD) saw a sharp drop in its market price on Saturday after its founder, Sam Altman, was removed as CEO of popular artificial intelligence company OpenAI. This development follows rigorous regulatory oversight on the crypto project due to privacy concerns.
OpenAI votes against Sam Altman and evokes a loss of confidence
In a shocking development on Friday, OpenAI announcement a change in leadership, stating that Sam Altman will immediately leave the company as CEO.
In this statement, the company expressed its gratitude to Altman for contributing immensely to their development during his four-year tenure as a global leader.
However, after an intense board review process, it was concluded that the Worldcoin founder had not been completely honest in his dealings with the board, leading to a loss of trust in his ability to continue as CEO.
Following Altman’s departure, Mira Murati, OpenAI’s chief technology officer, will now assume the role of interim CEO pending the appointment of a permanent successor.
However, as expected, the removal of Altman as CEO of OpenAI, combined with the scathing statements contained in the company’s announcement, created negative sentiment around the Worldcoin project.
According to data from CoinMarketCap, WLD is currently down 12.75% in the last 24 hours. Meanwhile, the token’s daily trading volume managed to stay afloat with a gain of 15.13%.
What future for Worldcoin?
Worldcoin officially launched in July with the aim of creating the largest digital and financial identity network. The project relies on the use of iris-scanning orbs to physically admit new members, raising concerns about user privacy, anonymity and data protection.
Following Altman’s departure from OpenAI, speculation is currently circulating about the future trajectory of Worldcoin. Clearly, Worldcoin has benefited from Altman’s visibility as CEO of OpenAI, as evidenced by the token’s current downtrend.
Notably, WLD gained over 25% in October, with many analysts citing anticipation of the OpenAI developer conference in November as the driving force.
Therefore, Altman’s removal from OpenAI does not bode well for Worldcoin in terms of credibility and public investor sentiment. On the other hand, Worldcoin may soon recover from the market crisis and reach highs despite this new challenge.
After its official launch in July, Worldcoin faced widespread criticism from global regulators who expressed concerns over operations related to data collection using iris-scanning orbs and potential applications of user data.
Notably, Worldcoin was suspended from Kenya, while the UK governments and Germany have opened investigations into the operation of the project.
However, the crypto project has remained resilient despite these regulatory hurdles, marking the milestone of 4 million app downloads and 1 million monthly active users, as reported earlier in November.
At the time of writing, WLD is trading at $1.85, down 0.86% in the last hour. Meanwhile, the token’s market capitalization is valued at $211.37 million.
WLD trading at $1.874 on the daily chart | Source: WLDUSDT chart on Tradingview.com
Featured image from The Independent, chart from Tradingview