Key Takeaways:
- Worldcoin (WLD) is facing an increased investigation from global regulators
- The price of WLD has tanked nearly 70% since July
- 90% of those that invested in WLD are currently in losses
YEREVAN (CoinChapter.com) — The troubles of the controversial crypto project Worldcoin (WLD) don’t seem to come to an end. Barely months after launch, the project has faced bans and increased scrutiny from regulators in several countries.
Worldcoin is a cryptocurrency project centered around iris biometrics. It scans the iris of individuals and offers a “genesis grant” of 25 units of its WLD cryptocurrency in return.
The project is the brainchild of Tools for Humanity, a company with operations in both San Francisco and Berlin. Established in 2019, the initiative was founded by notable figures including Sam Altman, the CEO of OpenAI, as well as Max Novendstern and Alex Blania. Importantly, it enjoys financial backing from the prominent venture capital firm Andreessen Horowitz.
In early August, the Kenyan Government’s Interior Ministry suspended the project in the country. The ban came amid privacy concerns and worries about national security. According to reports, over 400,000 Kenyans had signed up to give up their ISIS scans for financial rewards.
Days later, the Kenyan Police, under the supervision of Immaculate Kassait, the Data Protection Commissioner, raided the Worldcoin (WLD) warehouse in Nairobi.
Subsequently, the Kenyan government established a parliamentary committee comprising 15 members to investigate the project.
Worldcoin (WLD) tanks, keeping investors in prolonged losses
The overnight success of Worldcoin sent investors into a buying crazy. The sudden surge in interest among traders saw the price of WLD surge to $3.58 in July.
However, concerns from global watchdogs have pulled the breaks on its rise. At the time of writing, WLD is trading at $1.14, according to CoinMarketCap.
The price of the controversial crypto token is down 8% in the past 24 hours. In the past month alone, WLD has tanked over 40%.
Furthermore, insights from data analytics firm IntoTheBlock present a bleaker perspective for Worldcoin token investors. Their data indicates that a staggering 90% of current WLD investors find themselves in a state of loss. This suggests that only 5% of token holders are in profit. The remaining 5% are at a breakeven position with no gains or losses.
As more regulators continue to investigate the project, the WLD price could come further down. Conversely, should it recover to its all-time high of $3.58, those entering today could reap profits to the tune of 70%.
Kenya suspends Worldcoin (WLD) for one year
On September 6, Alex Blania, the Co-Founder of Tools for Humanity and CEO of Worldcoin, appeared before a Kenyan parliamentary ad hoc committee. He was there to address allegations of illegal operations and data mining within the country.
While Worldcoin gained international attention with its official launch on July 24, the committee learned that the project had been offering proof of humanness verification services in Kenya since 2021.
Additionally, the committee discovered that Worldcoin had established over 20 operational locations within the capital city.
A task force comprising multiple agencies was also established to investigate Worldcoin’s activities in Kenya. Those in the committee included the Office of the Data Protection Commissioner, the Communications Authority of Kenya, the Central Bank of Kenya, the Ministry of ICT, and the National Computer and Cybercrime Coordination Committee.
In its latest report, the committee has proposed a one-year suspension of the project’s operations within Kenya.
Global Scrutiny Mounts Over WorldCoin’s Privacy Practices
Besides Kenya, WorldCoin has found itself under increasing scrutiny from data protection authorities around the world. For example, the Bavarian State Office for Data Protection Supervision (DPS) in Germany initiated its investigation into WorldCoin back in November 2022.
In France, the French National Commission for Informatics and Liberty (CNIL) has cast doubts on the legality of WorldCoin. The agency is particularly worried about Worldcoin’s methods for storing biometric data.
Earlier this month, French authorities conducted searches in the project’s Paris office, raising concerns among investors.
In late August, the Information Commissioner’s Office (ICO) of the United Kingdom also joined global regulators in examining WorldCoin. Additionally, Argentina’s Agency for Access to Public Information has also initiated an investigation into WLD.
The project rose to popularity there, claiming to have signed over 95,000 people in one day.
The intensifying global scrutiny underscores the mounting privacy concerns surrounding the WorldCoin project.
