Worldcoin Plunges Over 50% Amid Global Data Privacy Concerns

Worldcoin (WLD) continues to plunge on the back of increased regulatory crackdowns by governments worldwide.

The cryptocurrency has fallen from an all-time high of $3.58 in mid-July and currently trades at $1.15, reflecting a 54% drop in value. 

Launched on July 24, 2023, Worldcoin is a digital identification platform that claims to prove personhood or a person is not a bot or robot by scanning their eyes. Users are scanned using a device known as an Orb and issued a global identity protocol known as a World ID in exchange for  WLD coins, which they can sell for fiat or hold.

Since its launch in July 2023, Worldcoin has witnessed epic growth, with the Open AI CEO Sam Altman-linked project announcing that it had hit 2.3 million world ID sign-ups worldwide as of August 31 2023. Nevertheless, despite the surging sing-ups, the project has had its fair share of challenges, with various governments raising alarm over its method of collecting user data.

Earlier in August, the high court in Kenya issued orders barring Worldcoin from taking data from citizens pending the hearing and determination of a petition filed by the office of the Data Protection Commissioner. The project was further ordered to preserve the data collected from citizens pending the hearing of the suit. Earlier last week, the country’s parliament began probing Worldcoin, with lawmakers being told that its activities were a threat to national security.

Several European regulators have also begun investigations into Worldcoin, including in Germany, where the Bavarian data protection office launched an investigation into the project in November 2022. France, too, has expressed its uneasiness with the National Commission of Informatics and Liberty questioning Worldcoin’s method of acquiring and storing data.

Late last month, the UK data watchdog also issued a statement noting that it was probing Worldcoin.

Interestingly, despite Woldcoin’s intended global reach, it remains unavailable in the US, mostly due to tough regulations. Notably, Worldcoin’s terms of service elaborate America’s position more clearly: “WLD tokens are not intended to be available for use, purchase, or access by US persons, including US citizens, residents, or persons in the United States, or companies incorporated, located, or resident in the United States, or who have a registered agent in the United States.”

Meanwhile, despite the excitement around Worldcoin already giving way to scepticism, the cryptocurrency has gained unprecedented traction in some jurisdictions. The project has enthralled Argentinians, who have turned up in large numbers to have their eyeballs scanned in exchange for WLD. In a blog published on August 31, Worldcoin reported that 9,500 Argentinians had verified their World ID in a single day (one verification every 9 seconds), setting a new single-day record.