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Sam Altman’s crypto project Worldcoin (WLD) loses its appeal in the digital sector as it fails to satisfy global regulators.
That has catalyzed robust bearishness for the altcoin, with prices plunging by over 40% within the past month. That saw most WLD holders enduring losses.
Over 80% of Worldcoin holders are at a loss
IntoTheBlock’s data confirms Worldcoin’s dire condition. Only 1% of its investors are making money at current WLD prices. Meanwhile, 81% experience losses, while 18% are at break-even.
Amplified regulatory scrutiny by global regulators has dented Worldcoin’s outlook and Sam Altman’s plans for his futuristic project.
Regulatory challenges hinder Worldcoin’s growth
The AI-centered crypto project has seen increased regulations in multiple jurisdictions. Kenyan regulators ordered Worldcoin to stop registering new users in 2023, citing privacy worries.
While Kenya dropped the investigation against the project, Worldcoin failed to attract the initial excitement.
In March 2023, Spain’s data watchdog AEPD temporarily banned Worldcoin from collecting personal data.
The regulator’s move aimed to avoid potential data transfer to third-party entities.
In response, Worldcoin accused AEPD of spreading misleading and false claims about the crypto project.
Also, the crypto faced challenges in Hong Kong and Germany.
The project suspended its undertakings in Hong Kong in May as regulators called the data collection process excessive and “unnecessary.”
Anti-Privacy Iris Data Collection is Unsurprisingly Deemed Excessive…
— Grant | Three Protocol (@FourNaanJez) May 24, 2024
Hong Kong has just completely halted all of Worldcoin’s operations thanks to its excessive data collection. @HKPCPD, clearly and rightly, felt that the collection of both facial and iris data from their users… pic.twitter.com/QiVE4Qjik5
Meanwhile, Germany is investigating Worldcoin, and the verdict on whether the project can continue running in Europe will come soon.
The futuristic crypto project has attracted attention due to its registration requirements, where users should scan their eyeballs for verification.
That aims to differentiate between AI and humans, with verified users granted the World ID digital identification.
Crypto enthusiasts still interested in Worldcoin
Despite the struggle, digital asset investors are still venturing into Sam Altman’s project. Santiment data shows WLD 24-hour active addresses surged 20% within the past day to surpass 330K.
Furthermore, the number of daily created Worldcoin wallets jumped to 11,500 from 4,900 since 18 August – a 133% uptick.
That confirmed healthy interest from new players despite WLD’s bearish moves over the past month. Also, stats show whales holding 1 million to 10 million tokens have surged within the previous month – from 14 to 18.
Worldcoin remains on the investor radar despite the regulatory-driven bearish performance. The project could witness robust growth once it satisfies global regulators.
Founder Altman believes Worldcoin offers a crucial option for users to prove their “personhood” and distinguish the rising AI-generated content.
Altman and co-founder Alex Blania expect Worldcoin to present vast economic opportunities once it succeeds.
If successful, we believe Worldcoin could drastically increase economic opportunity, scale a reliable solution for distinguishing humans from AI online while preservice privacy, enable global democratic processes, and eventually show a potential path to AI-funded UBI.
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