The Worldcoin cryptocurrency project, led by Sam Altman, the brains behind ChatGPT, is facing increased scrutiny from regulators around the world. The use of eyeball scanning bulbs in the user enrollment project has raised concerns about possible violations of data protection law.
The unique method of collecting biometric data without clear consent has given rise to discussions about legality and ethics. Regulators closely scrutinize the project’s compliance with privacy regulations and highlight the challenges of balancing innovation with legal and ethical standards.
The value of biometric investments made through Worldcoin’s crypto-based ‘free money’ pledge is decreased by half since launch. This decline can be attributed to growing concerns about the project’s data collection and the inconvenience this caused for regulators.
Why is the Worldcoin token crumbling?
Based on information provided by CoinMarketCap, the current trade value of the WLD Token stands at $1.28 at the time of writing. This figure represents a significant drop of 53% from the initial peak price of $2.71 on the day of the project’s launch.
The day after WLD’s Binance listing, on July 25, it traded at $2,456. As of Friday morning, the token’s price had since dropped to $1,317. Considering that several altcoins and cryptocurrencies recently experienced a market crash followed by a recovery within a few weeks, this is a big drop for a token.
WLDUSDT trading at $1.286 on the weekend chart: TradingView.com
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According to CoinGecko data, the price of WLD has fallen from just under $2.50 in early August to about $1.31 on August 25. That represents a 44% drop in the past 30 days, and if it continues to go in the wrong direction, the price of WLD will move into single digits over the past 30 days. next 30 days.
Ongoing investigations by authorities in various countries around the world have dealt a serious blow to the price of the WLD token. The project’s goal of establishing decentralized user identities has raised alarm bells about eye scanning and biometric data collection. This process may violate national data protection laws, leading to investigations in Germany, France and the United Kingdom.
The euphoria quickly disappeared
Worldcoin reported 2 million signups for World ID and distributed 43 WLD tokens during launch. Altman promoted iris scanning, but initial excitement waned. Early scanners received 25 WLD worth $60, now reduced to around $30. Early investors could have lost half of their investment, while short sellers benefited from Worldcoin’s decline.
Meanwhile, in the past 30 days, WLD and social volume has increased Social dominance has declined by a whopping 95% and 74% respectively, according to data source Santiment. This indicates a sharp drop in the hype of the project.
Source: Santiment
Worldcoin’s original white paper outlined its ambition to participate in global competition, provide money to those without financial resources, and provide banking services to people who currently have no access to traditional banking systems.
It seems that ambition will require more than mere lip service at this point.
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