Worldcoin Meltdown: 50% Crash Caused By Mounting Data Privacy Paranoia
August 27 2023 - 3:44AM
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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 Related
Reading: Tron Reverses August Slump As TRX Open Interest Climbs
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 Related Reading:
Shiba Inu Nears Make-Or-Break Resistance Barrier – What Awaits
Traders? 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
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