Worldcoin (WLD) Soars Following OpenAI’s Announcement of New ChatGPT Model
The price of Worldcoin (WLD) rises 16% and stabilizes at a 9.5% gain using OpenAI’s new AI model. Limited supply of WLD tokens raises volatility concerns, with critics warning of future price declines. As OpenAI unveils its improved reasoning model, the AI-related crypto market rises 2.1%.
In a move that has generated considerable interest in several sectors, including the crypto market, OpenAI has unveiled a new addition to its range of artificial intelligence models.
The new model is called OpenAI o1. It marks a significant departure from the company’s previous versions. It boasts improved inference capabilities and superior performance on complex tasks.
OpenAI Unveils New ChatGPT Model
OpenAI claims that these new AI models are able to “think before they react.”
“We have developed a new series of AI models that are designed to spend more time thinking before they react. They can reason through complex tasks and solve more difficult problems than previous models in science, programming, and mathematics,” OpenAI said in a blog post.
Despite its size, the smallest unit in this new line is said to surpass the capabilities of the GPT-4 in some key areas. These include AI evaluation tests that simulate Ph.D. level challenges.
However, the improvements have been less pronounced in more creative areas, such as writing and artistic endeavors. This specificity in the improvement has been of interest to tech enthusiasts and professionals with an interest in the use of these AI tools for specialized applications.
Worldcoin Price Increases 16%
In financial terms, the impact of this technological leap on the crypto ecosystem has been immediate. Over the past 24 hours, the total market capitalization of AI-related tokens has increased by a modest 2.1%.
In the meantime, Worldcoin (WLD) experienced a significant increase, rising by about 16% after the announcement was made. Lately, though, it has leveled off at 9.5%, trading at $1,518.
Given that Sam Altman is a co-founder of both Worldcoin and OpenAI, this increase is particularly noteworthy. Despite this connection, Worldcoin has been controversial in the crypto community because of its tokenomics.
According to the latest figures from CoinMarketCap, there are currently only 434 million WLD tokens in circulation out of a total supply of 10 billion. With the release of 2 million tokens per day starting July 24, this tightly controlled supply will increase. Each batch is worth approximately $3 million at current rates.
As a result, this gradual release mechanism is expected to create selling pressure in the market, reflecting the low float ratio of 0.02 highlighted in a May 2024 CoinGecko report. This low ratio suggests that only a limited number of tokens are available for trading, which could potentially lead to increased volatility as more tokens enter the market.
Detractors, including chain scientist ZachXBT, have taken to platforms like X, previously known as Twitter. Worldcoin’s narrative ranges from cautious optimism to skepticism.
“WLD has the worst tokenomics right now and is destined for a slow rug pull. I think short-term pumps and dumps should be expected more often in WLD to attract buyers for exit liquidity, but for a long-term price forecast, WLD is slated at $0.1,” said Marius Capital on X (Twitter).
By Audy Castaneda