Worldcoin's WLD token fell 9.1% in the last 24 hours and lost 43.6% over the past 30 days after Sam Altman’s crypto project launched its token roughly one month ago. As of 4:15 p.m. HKT, WLD was trading at around $1.33, compared with $2.36 from a month ago, according to data from CoinGecko.
"The recent decline in Worldcoin's WLD token price is a concerning trend, particularly when compared with the current signs of recovery in other tokens such as Ripple’s XRP," Jeff Mei, chief operating officer of crypto exchange BTSE, told The Block today.
"Despite launching only recently, Worldcoin finds itself facing regulatory headwinds due to concerns over data privacy," Mei said, adding: "The backlash has led to the exclusion of U.S. residents from purchasing or trading the token, exacerbating selling pressure. There have also been reports of Kenya’s parliament establishing a committee to investigate Worldcoin’s activities in the country."
Tools for Humanity, the lead developer of the Worldcoin project, was cofounded by Sam Altman, Alex Blania and Max Novendstern in 2019. The project encourages users to prove their identity online by signing up for a World ID via an iris scan.
Tools for Humanity did not immediately respond to The Block’s request for comment.
Government backlash against Worldcoin
Kenya — a market in which Worldcoin has already signed up hundreds of thousands of customers — suspended Worldcoin earlier this month. The Block previously reported that Worldcoin had signed up more than a quarter of a million people in Nairobi, Kenya’s capital city, as of December 2022.
Bavaria’s State Office for Data Protection Supervision has also been probing the project since last year over concerns about how sensitive data might be used.
"Multiple factors seem to be contributing to WLD’s downtrend," Mei said. "But the main aspect influencing market sentiment toward WLD, in particular, is the heightened scrutiny surrounding data collection and storage practices." Mei added that the broader market performance undoubtedly shapes how individual tokens, including WLD, fare on a daily basis. "But equally crucial is Worldcoin's ability to navigate the regulatory hurdles and satisfy compliance requirements."
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