Sam Altman's Worldcoin Raises $135M Amid AI-Driven Identity Verification Push

Sam Altman's Worldcoin Raises $135M, WLD Token Surges 25%

Zinger Points: WLD token jumped 25%, trading at $1.55, within 24 hours of the announcement on May 21. The funding will scale Orb distribution in the U.S. and fuel global demand for verifiable digital identity amid the rise of AI Worldcoin, the digital identity project co-founded by OpenAI CEO Sam Altman, has raised $135 million through a direct sale of its WLD token, according to the Worldcoin Foundation. Within 24 hours of the May 21 announcement, the token surged 25%, reaching a three-month high of approximately $1.55 -- up from an earlier dip below $1.24, according to Beincrypto. Trading volume also spiked past $1 billion, reflecting strong market interest and renewed momentum. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm -- Invest before it's too late. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing -- this is your last chance to become an investor for $0.80 per share. Direct Token Sale, No Venture Terms World Assets Ltd., a subsidiary of the Worldcoin Foundation, conducted the token sale. According to the Worldcoin Foundation, the token sale involved a direct purchase of WLD tokens at market prices by Andreessen Horowitz, or a16z, and Bain Capital Crypto, with "no venture-style lockups or discounts." The foundation said the transaction added over 100 million tokens to the circulating supply. The foundation clarified that the sale was not structured as a typical venture round but as a direct purchase of liquid tokens at market price, with no discounts. Iris Scans, Identity, And AI Risk Worldcoin uses a proof-of-personhood model, where users scan their irises via the Orb in exchange for airdropped WLD tokens. These tokens can then be used within Worldcoin's in-app ecosystem, according to a Worldcoin whitepaper. Trending: 'Scrolling To UBI' -- Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum. Deloitte's #1 fastest-growing software company partners with Amazon, Walmart & Target - Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share! Mode Mobile developed a smartphone called EarnPhone, which allows users to earn and save money by playing video games, listening to music and reading the news. With the phone priced at an affordable $99, the barriers to adoption are low. Earning Opportunity for All Smartphone Users Mode EarnPhone State-of-the-art smartphone device includes built-in earning features. EarnOS Proprietary earning software turns smartphones into EarnPhones. Min. Investment: $1000 Share Price: $0.26 Valuation: $310M Click To Learn More About Mode Mobile As of May, the project reported over 26 million users, with 12.5 million having completed Orb-based verification. According to the foundation, the funding supports the World's long-term mission to provide scalable human verification tools in the age of artificial general intelligence. The network is expected to become one of the first self-sustaining protocols, driven in part by protocol fees. Orb Expansion, AI Risks, And Regulatory Theater To meet growing demand, Worldcoin is rapidly scaling its Orb infrastructure across the U.S., with deployments already underway in Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco, CNBC reported. The company plans to distribute 7,500 Orbs across the country by the end of the year, offering access to biometric verification for over 180 million Americans. A flagship storefront has been launched in San Francisco, and a Texas-based facility will support nationwide Orb production and distribution, including placement in gas stations and convenience stores. Despite these expansion efforts, Worldcoin faces regulatory pushback in multiple regions. Authorities in Spain, Indonesia, and Kenya have raised concerns over data privacy and biometric compliance, with some halting or investigating the project, CNN reported. See Also: Be part of the next med-tech breakthrough for only $350 -- 500+ surgeries already done with nView's AI system. Early Backers Signal Long-Term Conviction Andreessen Horowitz and Bain Capital Crypto were among the earliest backers of Worldcoin, having previously invested in Tools for Humanity -- the company developing the project -- during a $115 million round led by Blockchain Capital in May 2023, according to Crunchbase. Their latest $135 million token purchase at full market price -- despite a 90% price decline over the past 14 months -- was seen by some as a bold vote of confidence. "A16z and Bain just bought $135 million of Worldcoin (WLD) at the current market price... a price that is down 90% over the past 14 months. I'm not sure I've ever seen something like that," said Matt Hougan, chief investment officer at Bitwise Asset Management, in a post on X. Read Next: Invest where it hurts -- and help millions heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold. Inspired by Uber and Airbnb - Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets - with $1,000 you can invest at just $0.30/share! Image: Shutterstock Market News and Data brought to you by Benzinga APIs

Two of Silicon Valley's Most Prestigious Venture Capital Firms Just Plowed $135 Million Into Sam Altman's Crypto Project. What Do They See That Wall Street Doesn't?

The first half of 2025 has been anything but predictable in the stock market. It seems like ages ago that concerns around Chinese start-up DeepSeek and the intensifying competitive landscape in artificial intelligence (AI) sent shockwaves across the capital markets. As investors know all too well, just about the only things economists have been talking about for almost two months now are tariffs. In the wake of all this uncertainty in the equity market, some astute investors have turned elsewhere. Specifically, the cryptocurrency market has started to attract some new life. Although Bitcoin seems poised to reach new all-time highs, venture capital (VC) juggernauts Andreessen Horowitz (A16Z) and Bain Capital just jointly plowed $135 million into a relatively new token called Worldcoin (WLD -0.23%) -- an initiative that was co-founded by Sam Altman, the chief executive officer of OpenAI. Let's explore what Worldcoin is and assess why two of Silicon Valley's most prestigious VC firms just invested in the fledgling crypto project during this period of pronounced market uncertainty. What is Worldcoin? Worldcoin is a cryptocurrency token that runs on the Ethereum blockchain. It serves as the transactional foundation for a project known as World Network. To put it simply, Altman and his co-founders are seeking to build a community (the World Network) that helps solve a use case known as "proof of human." Essentially, by becoming a member of the World Network, each user is then granted a unique identifier known as their custom World ID. In an effort to combat the same user signing up twice or having the network comprised by artificial intelligence (AI) bots, World IDs are verified using a technology called iris biometrics (eye scanning). Why might Silicon Valley be interested? Before joining The Motley Fool, I spent a decade working in investment banking as well as leading various financial projects at technology start-ups. Anecdotally speaking, I've seen VC investors become intrigued by ideas that may come across as off the beaten path. I see World Network as no different. On the surface, World Network parallels something out of an Orwellian novel. But digging a little deeper into its purpose, I can understand the need for solving the proof of human (PoH) use case. In its initial whitepaper, World Network outlines certain functions (such as voting online) that are currently difficult to perfect due to potential breaches of security protocols. To me, there is an opportunity here for World Network to touch a number of important addressable markets, such as digital identification, financial fraud, cybersecurity, and how each of these stitch together through the broader AI fabric. There are some reports suggesting that interest is high for World IDs. Hence, there may have been a need for a capital infusion to fund the resources required to fulfill demand. With that said, I can't help but think the recent $135 million purchase of Worldcoin by A16Z and Bain Capital is anything more than a form of hedging. Said a different way, investing in the stock market right now is likely unattractive for institutional investors. Since the venture realm is inherently risky in the first place, I think it makes more sense for funds to double down on existing portfolio opportunities, as opposed to allocating any dry powder to new start-ups with little to no traction or volatile stocks. Should you buy Worldcoin right now? Broadly speaking, the cryptocurrency landscape is incredibly volatile. Even established cryptocurrencies such as Bitcoin often display meme-like behavior as investors chase momentum for no tangible reason. This can make the price action of cryptocurrencies highly unpredictable. Following news of the investment by A16Z and Bain Capital, Worldcoin rocketed by roughly 40%. Although these gains have retreated a bit, the crypto is still trading at levels that suggest some momentum is still holding (or HODLing). One big concern I have about investing in Worldcoin is how the legal and regulatory environment will affect World Network's ability to scale in the long run. While Altman's prominent position in the broader AI landscape could serve as an asset, I still see the project as more of an uphill battle right now. Although I understand why VCs are intrigued with Worldcoin, the majority of investors don't have the same financial flexibility as these funds. Ultimately, I think investing in Worldcoin is highly speculative (even for crypto!), and I would pass on the opportunity right now.