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WLD Token Surges, but Concerns Arise Amid Crypto Community Backlash

Worldcoin's WLD token experienced a roller-coaster ride during its initial launch, with significant gains followed by a steep decline due to concerns raised by the crypto community.

Worldcoin's token falls amid concerns over identity verification process.
Creator: ismagilov | Credit: Getty Images/iStockphoto

SAN FRANCISCO, CA – Worldcoin's recently launched crypto token, WLD, witnessed a surge in value upon its debut, but its gains were short-lived as concerns from the crypto community overshadowed the excitement. Founded by OpenAI's Sam Altman, the Worldcoin identity-verification project utilizes the Orb, a hardware unit, to verify individuals by scanning their irises, aiming to play a crucial role in the integration of artificial intelligence into society.

However, as previously reported by Foretoken Media, the project has faced criticism, with Ethereum co-founder Vitalik Buterin expressing concerns about privacy, centralization, and security issues. Additionally, the firm has come under scrutiny for its aggressive promotion in the developing world, leading to questions about possible exploitation.

WLD Token Volatile Performance

Following its launch, the WLD token soared to a peak value of $3.58 on crypto exchanges before experiencing a sharp decline to $1.92 overnight. Subsequently, the token rebounded and was trading at $2.43, more than 25% above the low. This fluctuation in value is reflective of the crypto community's apprehensions surrounding the Worldcoin project and its potential implications on privacy and data security.

Privacy Concerns and Developing World Exploitation

Vitalik Buterin's blog post raised red flags about possible abuses of the Orb-based system, including privacy breaches and issues related to centralization and security. Furthermore, Worldcoin's heavy promotion in the developing world, with 30% of Orb-verified users in Asia and Africa, has raised concerns about potential exploitation of vulnerable populations.

U.K. Data Watchdog's Inquiry and Worldcoin's Response

The U.K. data watchdog announced its inquiry into the Worldcoin project, hinting at concerns about the collection of personal data. In response, the firm emphasized its adherence to strict privacy guidelines and requirements in the markets where it operates. However, questions remain about the extent of data collection and its implications for user privacy.

Backing from Crypto Controversial Figures and Tokenomics Concerns

Worldcoin's association with controversial figures in the crypto space has added to its negative perception. Notably, the project received investment from Sam Bankman-Fried, the CEO of FTX, which has faced allegations of fraud and bankruptcy.

The involvement of bankrupt Singapore hedge fund Three Arrows Capital also contributed to the skepticism. Additionally, the project's tokenomics have been criticized for their resemblance to the SBF Solana ecosystem, with only 1% of the total token supply in circulation at launch.

Token Supply Strategy and Ambitions

The Worldcoin project aims to create a vast network of human users, leading to a low initial circulating supply of WLD tokens. The firm plans to increase token allocations to users over time, allowing the supply to grow organically during its first week of operation. However, some critics argue that the minimal utility of the token and a short lockup period for early investors could lead to speculative trading.


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