The Worldcoin cryptocurrency project, led by Sam Altman, the creator of ChatGPT, is currently under intense scrutiny from regulatory bodies across the globe. The project’s use of eye-ball scanning orbs for user enrollment has raised significant concerns regarding potential violations of data protection laws. This unique method of collecting biometric data without clear consent has sparked debates regarding the legality and ethics surrounding such practices. As a result, regulatory bodies are closely examining the project’s compliance with privacy regulations, shedding light on the challenges of finding a balance between innovation and adherence to legal and ethical standards.
The shift in sentiment towards the Worldcoin project is evident through the significant decrease in the value of biometric investments made through its crypto-based “free money” promise. Since its launch, the value has decreased by half, primarily driven by concerns surrounding the project’s data collection methods and the resulting unease among regulators.
Analyzing the current trading value of the Worldcoin (WLD) token, it is apparent that the token has experienced a substantial decline of 53% from its initial peak price of $2.71 at the time of writing, based on information provided by CoinMarketCap. The day following WLD’s listing on Binance, it traded at $2.456. However, the token’s price has consistently decreased since then, currently standing at $1.28. Considering the market volatility of altcoins and cryptocurrencies, the significant decrease in WLD’s price after just a few weeks is alarming.
CoinGecko data further highlights the decline in the price of WLD, which has dropped from slightly under $2.50 at the beginning of August to approximately $1.31 as of August 25. This represents a 44% decline in just 30 days, raising concerns about the potential for further price deterioration. If the downward trend continues, there is a possibility that WLD’s price could enter single-digit figures within the next 30 days.
The ongoing investigations conducted by authorities in various countries worldwide have had a detrimental impact on the price of the WLD token. The project’s objective of establishing decentralized user identities, facilitated through eye-ball scanning and biometric data collection, has raised alarm bells and potential breach of national data protection laws. Consequently, regulatory agencies in Germany, France, and the United Kingdom have initiated investigations into the project, further contributing to the decline in the token’s value.
The initial excitement surrounding Worldcoin has quickly faded as the project reported 2 million sign-ups for World ID and distributed 43 WLD tokens during its launch. Despite the promotion of iris scanning, the enthusiasm from early adopters and investors has waned significantly. Early participants who received 25 WLD, initially valued at $60, have seen their investment decrease to approximately $30. This decline indicates that early investors might have lost half of their initial investment, while short sellers have profited from Worldcoin’s downfall.
When examining the project’s social volume and social dominance, on-chain data source Santiment reveals a substantial decline. Over the past 30 days, WLD’s social volume has decreased by 95%, while its social dominance has decreased by 74%. These figures illustrate a sharp decline in the project’s overall hype and interest among investors and the crypto community.
Worldcoin’s original white paper outlined its aspirations to participate in global competition, provide financial resources to those in need, and offer banking services to individuals without access to traditional banking systems. However, achieving these ambitious goals will require more than mere lip service at this point.
It is crucial to note that the information provided in this content should not be construed as investment advice, as investing in cryptocurrencies involves inherent risks. When investing, one’s capital is subject to potential risks and losses.
