Worldcoin Meltdown: 50% Crash Caused By Mounting Data Privacy Paranoia

Christian Encila

Last Updated: June 11, 2024 10:44 am

3 mins read

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The Worldcoin cryptocurrency project, led by Sam Altman, the brains behind ChatGPT, is facing increased scrutiny from regulators worldwide. The project’s use of eye-ball scanning orbs for user enrollment has raised concerns about potential violations of data protection laws.

The unique method of collecting biometric data without clear consent has prompted discussions on legality and ethics. Regulatory bodies are closely examining the project’s compliance with privacy regulations, highlighting the challenges of balancing innovation with legal and ethical standards.

The value of biometric investments made through Worldcoin’s crypto-based “free money” promise has decreased by half since its launch. This decline can be attributed to the growing concerns about the project’s data collection and the unease it caused regulators.

Why Is Worldcoin Token Crumbling?

Based on information provided by CoinMarketCap, the current trading value of the WLD token stands at $1.28, at the time of writing. This figure signifies a substantial decline of 53% from its 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 for $2.456. As of Friday morning, the token’s price had decreased from that time to $1.317. Given that several altcoins and cryptocurrencies recently had market crashes followed by recoveries within a few weeks, this is a big decrease for a token.

WLDUSDT trading at $1.286 on the weekend chart: TradingView.com

According to data from CoinGecko, the price of WLD has decreased from slightly under $2.50 at the start of August to roughly $1.31 as of August 25. That represents a 44% decline in the previous 30 days, and if it keeps going in the wrong direction, WLD’s price will go to single digits in the next 30 days.

Ongoing investigations by authorities in various countries around the world have dealt a heavy blow to the price of the WLD token. The project’s goal of establishing decentralized user identities has raised alarm bells because of its eye-ball scanning and biometric data collection. This process potentially breaches national data protection laws, leading to investigations in Germany, France, and the United Kingdom.

The Euphoria Quickly Faded

Worldcoin reported 2 million sign-ups for World ID and distributed 43 WLD tokens during its launch. Altman promoted iris scanning, but the initial excitement waned. Early scanners received 25 WLD valued at $60, now reduced to around $30. Early investors could have lost half their investment, while short sellers profited from Worldcoin’s decline.

Meanwhile, in the last 30 days, WLD’s social volume and social dominance have decreased by a whopping 95% and 74%, respectively, according to on-chain data source Santiment. This denotes a sharp decline in the project’s hype.

Source: Santiment

Worldcoin’s original white paper outlined its aspiration to participate in global competition, provide funds to those without financial resources, and offer banking services to those currently without access to traditional banking systems.

It appears that ambition will demand more than mere lip service at this point.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Nation Media Group

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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