Worldcoin Called Overlooked AI Bet; Maelstrom Sees 900% Rally

What Happened

Arthur Hayes' investment firm Maelstrom has spotlighted Worldcoin (WLD) as an overlooked bet on the artificial intelligence boom. The firm's researcher Lukas Ruppert called WLD "one of the cleanest proxies" for AI upside, predicting the token could surge to $5 by August. That target represents a 900% gain from its current price around $0.50. WLD has already jumped 60% in the past week as traders begin pricing in the narrative.

The call comes as two AI giants, OpenAI and Anthropic, prepare for massive public listings. OpenAI confidentially filed for an IPO targeting a $1 trillion valuation, while Anthropic's latest funding round pegged it at $965 billion. Maelstrom argues that crypto markets have not fully priced in the AI IPO wave, leaving WLD undervalued.

The Numbers

WLD trades near $0.50 with an unlocked market cap of roughly $2 billion. Maelstrom's $5 target implies a nearly 10x move from current levels. The token is deeply shorted after a $65 million OTC round in March, where buyers hedged by shorting perpetual futures. Of that raise, $25 million is locked for six months. Daily token unlocks, a constant source of sell pressure, are set to drop by 43% on July 24. Meanwhile, Eightco (ORBS) holds 283 million WLD tokens and $144 million in cash, which could be deployed to buy more and squeeze shorts.

Why It Happened

The WLD thesis hinges on two catalysts: a short overhang and an unlock schedule reduction. OTC buyers shorted WLD to protect against price declines before their tokens unlock, creating a large short position. If Eightco uses its cash to purchase more WLD, it could spark a reflexive rally as shorts are forced to cover. The July 24 cut in daily unlocks removes another headwind, potentially turning supply dynamics bullish.

Beyond tokenomics, WLD's connection to OpenAI CEO Sam Altman positions it as a proxy for AI mania. With capital desperate for AI exposure, WLD's small market cap could attract speculative flows that bypass direct equity investments. Ruppert noted that AI valuations are now in the trillions, while WLD is a "small cap"—making it an asymmetric bet.

Broader Impact

If the thesis plays out, WLD could become a benchmark for crypto-AI convergence. A price surge might prompt other projects to emphasize AI ties, blurring lines between token and tech equity markets. Success could also lift small-cap tokens with AI narratives, creating a sector rotation within crypto. However, the massive valuation gap between AI giants and WLD underscores the speculative nature of this trade.