Despite facing early regulatory challenges across multiple jurisdictions, Worldcoin announced that the demand for its global World ID verifications has doubled during the first week since its launch. This surge in demand can be attributed to the release of new Orbs worldwide. Prior to its launch, Worldcoin had already attracted more than 2 million registrations, indicating a significant interest in its services.
Worldcoin reported that its designated wallet for the project, World App, experienced a threefold increase in active users and a tenfold increase in weekly account creations during the same period. These numbers highlight the growing popularity of Worldcoin and its ability to attract users to its platform.
Regulatory Scrutiny and Privacy Concerns
Since its launch, Worldcoin has faced intense regulatory scrutiny in various countries such as Kenya, Britain, France, and Germany. These regulatory bodies have raised concerns about how Worldcoin handles the private data it collects. Germany’s top privacy regulator has been investigating the firm’s data collection practices since November 2022, while other countries’ data watchdogs have expressed similar concerns.
In Kenya, Worldcoin has been indefinitely suspended pending the determination of the authenticity and legality of its activities. The authorities in Kenya have warned that they will take action against any individual supporting Worldcoin’s operation. This suspension poses a significant setback for Worldcoin’s expansion plans in Africa.
Criticisms from Crypto Community
Prominent members of the cryptocurrency community, including Peter McCormack, the host of the “What Bitcoin Did” podcast, have criticized Worldcoin’s reliance on biometric data for identity verification. Worldcoin requires individuals to scan their iris using one of its Orbs to confirm their human identity. However, there are concerns about the privacy implications of such biometric scanning.
Compliance with Local Data Collection Laws
Worldcoin has claimed that it complies with local laws governing the collection of personal data in all the markets where it operates. However, this claim has been met with skepticism, given the ongoing regulatory investigations and concerns raised by data watchdogs.
Token Value and Holder Numbers
Despite the early success claims, the value of Worldcoin’s WLD token has dropped by 11% in the last seven days, according to data from CryptoSlate. As of press time, the token is trading at $2.03. On-chain data from Etherscan reveals that Worldcoin has less than 6000 holders and has only experienced 23,655 transfers during this period.
Worldcoin’s global World ID verifications have seen a surge in demand despite the regulatory troubles it has faced. The release of new Orbs worldwide has contributed to this increased demand, leading to a doubling of verification numbers. However, Worldcoin continues to face intense regulatory scrutiny and privacy concerns in various countries. Critics within the crypto community have raised doubts about the use of biometric data for identity verification. Worldcoin maintains that it complies with local data collection laws, but the ongoing investigations and concerns cast doubt on this claim. The drop in token value and low number of holders indicate that Worldcoin still has challenges to overcome on its path to success.
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