The Worldcoin, the cryptocurrency that Sam Altman, CEO of OpenAI, has put into circulation a little over a month ago, is collapsing resoundingly. According to information from The Block, the Worldcoin lost 44% of its value in a matter of 30 days. Its biggest setback occurred on Friday, August 25, after reporting a fall of 9.1%.
When the Worldcoin started its journey, it was worth $2.36. At the time of writing this post, it sits around the $1.33 dollars. For Jeff Mei, operational director of the BTSE exchange platform, the Worldcoin situation is quite worrisome, as other cryptocurrencies have shown signs of recovery in recent weeks.
“The recent drop in the price of Worldcoin is a worrying trend, especially when compared to the current signs of recovery in other tokens such as XRP.”
Jeff Mei.
Now, the early crash of the Worldcoin it is not a simple causality. In fact, there are fundamental reasons that have questioned the future of this cryptocurrency.
We must remember that the Worldcoin is granted to those people willing to transfer their biometric data to the company of the same name founded by Altman. The goal of the entity is to create a World ID, a unique virtual identification, and a database of “authentic human beings.”
Worldcoin and the fear around privacy
Initially, Worldcoin started on the right foot. The eye-scanning device, a curious sphere with a camera, was placed in 35 cities around the world. Others were added in subsequent weeks. But, evidently, it did not take long for the first privacy concerns.
How is this data stored? What control do users have over it? Can Worldcoin transfer this information to third parties if it deems appropriate? The unknowns did not stop appearing and, finally, some governments turned to see with concern the proposal of the also CEO of OpenAI.
Britain, France and Germany launched an investigation to look into Worldcoin practices. Independent organizations such as Big Brother Watch are also speaking out: “Digital identification systems increase state and corporate control over people’s lives.”
“Despite its recent launch, Worldcoin faces regulatory hurdles due to data privacy concerns. This has led to the exclusion of US citizens from buying or trading the token, exacerbating selling pressure.”
Jeff Mei.
Thus, the possible intervention of the authorities puts in doubt the value and, of course, the future of the Worldcoin.
And if this were not enough, this same month the government of Kenyawhere a notable number of people gave up their biometric data in exchange for cryptocurrency, suspended Worldcoin activity in the country.
Mei stresses that there are multiple factors that are contributing to the fall of the Worldcoin. However, none carry as much weight as the doubts that their activity generates in the face of regulatory bodies that protect privacy. It will be interesting to see how the company reacts to the impending reviews by the authorities.