Cryptocurrency Market Focuses on Worldcoin Developed by ChatGPT Creator
Worldcoin easily captures attention as over 2.2 million individuals have registered, undergoing iris scans to obtain a digital identification and, in certain nations, receiving complimentary cryptocurrency.
ChatGPT founder Sam Altman’s new project aims to create a blockchain-based “identity and financial network.” Its original coin, WLD, has held steady between $2 and $2.50 since its launch on July 24, sparing it the pump-and-dump trajectory of many new cryptocurrencies so far.
According to Gordon Grant, head of trading at Genesis Trading, the investor panel has considered Worldcoin’s prospects. Genesis Trading is not yet offering the token to customers.
“There are people who have really taken a view on this project, both positive and negative,” he said.
According to the white paper published by Worldcoin on its website, a total of 10 billion tokens will enter the market in the next 15 years. Data from market tracker CoinGecko shows that the supply in circulation as of Monday was 120 million tokens, about 1.2% of the total projected future supply.
Some tech players are excited by Worldcoin’s plan to offer a digital ID based on what it calls “proof of personality,” backed by investors such as Andreessen Horowitz.
PitchBook analyst Robert Le said several startups tried to build blockchain-based digital identity systems, but none on the scale of Worldcoin.
Worldcoin’s bet is that this will become even more important as AI bots increase people’s need to be able to verify their human status online.
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As with many crypto activities, caveat emptor.
James Butterfill, head of research at CoinShares, said he expects buyers to be retail investors at the moment, as uncertainty over whether Worldcoin is a security could make institutional players more cautious.
More than 50 altcoins — the term refers to cryptocurrencies smaller than Bitcoin and ether — have flagged as securities, according to the US Securities and Exchange Commission’s CCData.
Worldcoin has been under investigation by German security authorities since November last year, and the company was ordered to stop eyeball scanning operations in Kenya last week over concerns about potential risks to public safety.
“It’s never an uphill battle for regulators to investigate a token,” said Riyad Carey, a research analyst at blockchain analytics firm Kaiko.
Worldcoin says it is “completely private,” that its ID system is “designed to enable anonymous operations,” that by default personal information is not disclosed, and that biometric images are not shared with Worldcoin unless the user chooses to do so. It says that it cooperates closely with the regulatory authorities.
