Sam Altman, the mind behind ChatGPT, is the leader of the Worldcoin cryptocurrency project, which is being closely examined by regulators all around the world. Data protection regulations may have been broken by the project’s use of eye-ball scanning orbs for user enrollment.

The novel way of gathering biometric data without express authorization has sparked debates about lawfulness and morality. The project’s adherence to privacy laws is being rigorously scrutinized by regulatory organizations, underscoring the difficulties of striking a balance between innovation and moral and legal obligations.

Since its introduction, Worldcoin’s crypto-based “free money” promise has seen a 50% decline in the value of biometric investments. This reduction can be attributed to the authorities’ uneasiness and growing worries about the project’s data collection.

Why Is Worldcoin Token Crumbling?

The WLD token now has a trading value of $1.28, according to data from CoinMarketCap as of this writing. This statistic represents a significant drop of 53% from the project’s launch day peak price of $2.71.

On July 25, the day following WLD’s Binance launch, it traded for $2.456. The token’s price has dropped from that point to $1.317 as of Friday morning. This is a significant decline for a token, especially in light of the recent market crashes and recoveries experienced by various altcoins and cryptocurrencies.

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WLD’s price has dropped from just under $2.50 at the beginning of August to about $1.31 as of August 25, according to statistics from CoinGecko. The price of WLD will drop to single digits in the following 30 days if the current trend continues. That is a 44% loss over the previous 30 days.

The price of the WLD token has taken a significant hit as a result of ongoing investigations by authorities in several nations around the world. The project’s eye-ball scanning and biometric data collection have aroused concerns due to its aim of establishing decentralized user identities. Investigations have been conducted in Germany, France, and the United Kingdom because of possible violations of national data protection regulations by this technique.

The Euphoria Quickly Faded

43 WLD tokens were given during World ID’s launch, and Worldcoin reported 2 million World ID sign-ups. Iris scanning was pushed by Altman, but the initial excitement subsided. Early scanners received 25 WLD worth $60, which has since been reduced to about $30. While short sellers benefited from Worldcoin’s drop, early investors might have lost half of their investment.

Santiment, an on-chain data source, reports that over the past 30 days, WLD’s social volume and social dominance have dropped by a staggering 95% and 74%, respectively. This indicates a dramatic drop in project hype.

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The original white paper for Worldcoin detailed its goals to compete globally, give money to people who lack it, and provide banking services to people who don’t currently have access to conventional banking systems.

At this point, it seems that ambition will require more than just platitudes.

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