The Worldcoin cryptocurrency initiative, spearheaded by Sam Altman, the mastermind behind ChatGPT, finds itself under intensifying regulatory scrutiny across the globe. The utilization of i-ball scanning orbs for user registration has sparked worries regarding potential infringements of data protection statutes.
Unauthorized Biometic Harvesting at the Crux
The distinct approach of harvesting biometric information without explicit authorization has ignited debates about legality and ethical considerations. Regulatory authorities are meticulously evaluating the initiative’s adherence to privacy regulations, underscoring the intricate balance between groundbreaking innovation and upholding legal and ethical norms.
The allure of biometric investments, predicated on Worldcoin’s cryptocurrency-backed promise of “free money,” has dwindled by half since its inception. This downturn can be linked to escalating anxieties over the initiative’s data collection practices and the discomfort it has caused within regulatory circles.
Worldcoin Token’s Decline
According to data sourced from CoinMarketCap, the current trading value of the WLD token rests at $1.28 at the time of this writing. This figure signifies a substantial decline of 53% from its initial peak price of $2.71 upon the project’s launch.
After the Binance listing on July 25, the token traded at $2.456. By Friday morning, its value had plummeted to $1.317. While numerous altcoins and cryptocurrencies have experienced recent market crashes followed by swift recoveries, this substantial drop for the token stands out.
CoinGecko’s data reveals that the price of WLD has slid from just under $2.50 at the start of August to approximately $1.31 as of August 25. This marks a 44% decrease within the preceding 30 days. Should this trajectory persist, WLD’s value might sink into single digits over the next month.
Global Investigations Undermine Worldcoin’s Value
The ongoing probes conducted by authorities in several countries worldwide have damaged WLD token’s value. The initiative’s objective of establishing decentralized user identities, entailing iris scanning and biometric data collection, has sounded alarm bells. The potential violation of national data protection laws has prompted investigations in Germany, France, and the United Kingdom.
Initial Enthusiasm Fizzles
During its launch, Worldcoin boasted 2 million sign-ups for World ID and distributed 43 WLD tokens. Sam Altman championed iris scanning, yet the initial excitement quickly waned.
The price of early scanners, initially set at 25 WLDs for $60, has reduced to around $30. Early investors might have incurred substantial losses, while short sellers capitalized on Worldcoin’s downward spiral.
Simultaneously, the past 30 days have witnessed a dramatic decline in WLD’s social volume and social dominance—decreasing by a staggering 95% and 74%, respectively, as per data from on-chain source Santiment. This stark decline reflects a diminishing buzz around the project.
The original white paper of Worldcoin articulated ambitions of global competitiveness, empowering the financially underserved, and extending banking services to those excluded from traditional systems. However, it is now evident that realizing these aspirations necessitates more than mere rhetoric.