Elon Musk sues OpenAI, Worldcoin sinks by 5%

The Worldcoin (WLD) cryptocurrency token created by Sam Altman sunk 5% after a lawsuit from billionaire Elon Musk against OpenAI.

Billionaire Elon Musk filed a lawsuit against OpenAI and its CEO, Sam Altman, on March 1, in what Reuters is reporting as an accusation by the tech mogul that OpenAI has been engaging in unfair business practices, breach of fiduciary duty, and breach of contract.

According to CoinMarketCap data, over the past 24 hours, the WorldCoin token, which is backed by Altman, has fallen by almost 5% to $7.53. A reduction in the trading volume of the token accompanied the fall of 40%, indicating that traders may await a price correction.

The billionaire is seeking an injunction against OpenAI, Altman, and company co-founder Greg Brockman from profiting from “AGI”, by which Musk means ChatGPT-4.

The lawsuit states that previous iterations of this product were available as open source. According to Musk, the decision to abandon this approach was dictated by commercial goals and not by concern for the good of society.

The WLD token is not directly related to the activities of OpenAI, but in both cases, the projects are led by Altman. This connection has resulted in WLD reacting sensitively to OpenAI-related news. In particular, last week, the token reached an all-time high after OpenAI announced the launch of a neural network for video generation, Sora. In addition to leading OpenAI, Sam Altman co-founded Tools for Humanity, the company behind Worldcoin.

At the same time, Worldcoin faces its own set of challenges with project recently being forced to stop providing digital identification services in India, Brazil, and France.