Arthur Hayes, co-founder of BitMEX, has sold his entire position in Worldcoin (WLD) just days after his investment firm, Maelstrom, touted the token as a promising opportunity in the AI initial public offering (IPO) space. This decision, made on June 6, resulted in a drop of over 25% in WLD's value within hours, highlighting the volatility that often characterizes cryptocurrency markets.
Hayes' exit completes the unwinding of his so-called "Holy Trinity" portfolio, which included high-conviction investments in Hyperliquid (HYPE), NEAR Protocol, Zcash (ZEC), and WLD. He began selling on June 4, offloading both HYPE and NEAR, and followed with a quick disposal of ZEC on June 5 after a vulnerability was discovered in Zcash’s Orchard shielded-pool.
In a post on social media platform X, Hayes explained his decision: "This chart is going in the wrong direction. Dumped $WLD. I’m out. See y’all at the clerb." He shared a chart tracking the SpaceX perpetual swap market, which he had used as an indicator for AI IPO momentum. The chart's decline led Hayes to rethink his optimistic outlook on WLD.
The timing of Hayes' sell-off has raised eyebrows, especially considering his previous endorsements of the tokens in his portfolio. On-chain analyst ZachXBT pointed out the rapid sequence of his exits, questioning the coherence of his investment strategy. In response, Hayes noted that he sold to a willing buyer at an agreed price and that his trading strategy had changed. However, he did not reveal the size of his WLD position or its cost basis, leaving some elements of his strategy unclear.
Before Hayes' exit, Maelstrom had issued a bullish note on June 3, positioning WLD as an undervalued asset likely to benefit from the AI IPO cycle. Research analyst Lukas Ruppert referenced Worldcoin’s ties to OpenAI CEO Sam Altman, a significant reduction in daily token enables set for July 24, and a short overhang from a previous OTC round as potential indicators for WLD's upside. Following this note, WLD surged approximately 88%, rising from $0.33 to over $0.62 by June 5. However, by the time Hayes' exit was announced, the price had already begun to retract, settling around $0.40 shortly thereafter.
Current trading data shows WLD at $0.49, reflecting a modest 2.9% increase over the past 24 hours, while still demonstrating an impressive gain of roughly 84% over the last month. With a market cap of $1.69 billion and a fully diluted valuation of $4.99 billion, the token remains a key topic in discussions about AI-related cryptocurrencies.
The "Holy Trinity" concept was introduced by Hayes during a recent appearance on Scott Melker’s show. He described it as a trio of high-conviction altcoin investments based on the expectation of increased capital flowing into AI-related projects and upcoming tech IPOs. The rapid dissolution of this portfolio—culminating in the exit from WLD, which replaced the underperforming ZEC—underscores the unpredictable nature of market sentiment.
Hayes had previously explained his rationale for exiting HYPE and NEAR on June 4, linking it to rising energy prices due to geopolitical tensions in Iran and anticipating three major AI IPOs before early Q3 2023. He believed that traditional markets might peak before September, which also influenced his initial investment thesis for WLD as a way to benefit from the AI IPO trend.
The sudden shift in Hayes' strategy, especially after the positive sentiment sparked by Maelstrom's note, raises important questions about market dynamics and investor confidence in AI-related cryptocurrencies. As the situation develops, analysts and investors will closely observe the impact of such swift exits, particularly in relation to upcoming AI IPOs and broader market trends.
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