Worldcoin, a project co-founded by OpenAI CEO Sam Altman, has recently launched its native token, WLD, sparking significant interest and debate within the crypto community. The project's unique approach to verifying human identity and its potential implications for a future dominated by AI have made it a hot topic in the crypto space.
Worldcoin was founded with the ambitious goal of creating a new identity and financial network owned by everyone. The project aims to increase economic opportunity, distinguish humans from AI online while preserving privacy, enable global democratic processes, and potentially pave a path to AI-funded Universal Basic Income (UBI).
The Worldcoin project offers a privacy-preserving digital identity, known as World ID, and a digital currency, WLD, which is received simply for being human. Users can download the World App, the first protocol-compatible wallet, and reserve their share. After visiting an Orb, a biometric verification device, users receive a World ID, which allows them to prove they are a real and unique person online while remaining completely private.
The launch of the WLD token on July 24, 2023, saw its price soar to $3.58 shortly after launching, but later it was trading at $2.22, reflecting a 33% gain on the day. Despite criticisms, WLD's performance surpassed that of major cryptocurrencies like Bitcoin and Ethereum on the day of its launch.
Concerns and Criticisms of the Wolrd Coin {WLD} Cryptocurrency
However, concerns have been raised due to WLD's circulating supply versus its supply cap. Only 1% of the total supply is currently in circulation, giving Worldcoin a fully diluted market capitalization exceeding $22 billion. The token launch involved issuing 143 million WLD, with 100 million WLD allocated to market makers and the rest going to investors who verified their identity through iris scanning during Worldcoin's pre-launch process.
Despite these concerns, major exchanges like Binance, Bybit, Huobi, OKX, Gate.io, and KuCoin have listed Worldcoin, and its 24-hour trading volumes exceeded $348 million shortly after its launch.
According to the project's white paper, 75% of the tokens will be available to the Worldcoin community, 13.5% for investors, 9.8% for the initial development team, and 1.7% as a reserve.
Worldcoin's vision is to provide a "proof of personhood" to combat a potential AI dystopia. The project uses an Orb device to scan people's irises, converting them into cryptographic code. Those scanned receive crypto as universal basic income, considering AI's potential to replace jobs. As of the time of writing, the project has scanned over 2 million irises.
The launch of Worldcoin's WLD token and its subsequent performance have certainly raised eyebrows in the crypto community. As with any investment, potential investors should conduct thorough research and consider the risks before making a decision. The future of Worldcoin and its impact on the crypto market remains to be seen.
Delving Deeper: Sam Altman's Track Record and Investor Considerations
Sam Altman, the co-founder of Worldcoin, is no stranger to the world of technology and innovation. Before Worldcoin, Altman was notably associated with OpenAI, where he served as the CEO.
OpenAI CEO: Sam Altman
Under his leadership, OpenAI launched ChatGPT, which propelled the company to a staggering valuation of almost $30 billion. This success story is a testament to Altman's knack for identifying and nurturing groundbreaking ideas.
Given Altman's past successes, it's tempting for investors to draw parallels between OpenAI and Worldcoin. Both projects, in their essence, revolve around the theme of AI and its integration into our daily lives. While OpenAI focuses on creating and refining AI models, Worldcoin aims to address the challenges that arise from an AI-dominated future, particularly the need to distinguish between humans and machines.
However, while the founder's track record is impressive, investors should approach Worldcoin with a discerning eye. Here are a few considerations to keep in mind:
- Different Domains: While both OpenAI and Worldcoin touch upon AI, they operate in different domains. OpenAI is primarily about AI research and development, whereas Worldcoin ventures into the realm of cryptocurrency and identity verification.
- Market Volatility: The cryptocurrency market is known for its volatility. The initial surge in WLD's price, while impressive, is not an absolute indicator of its long-term performance. Past performance in other projects does not guarantee future results in a different domain.
- Regulatory Landscape: Worldcoin's approach to identity verification, especially using biometric data like iris scans, might face regulatory challenges in various jurisdictions. The project has already faced limitations in the U.S. due to regulatory uncertainties.
- Supply Concerns: The concerns regarding WLD's circulating supply versus its supply cap are valid. With only 1% of the total supply in circulation, the potential for market manipulation exists.
- Technological Challenges: The ambitious goal of scanning billions of irises means Worldcoin will face significant technological and logistical challenges. Their ability to scale and ensure user privacy will be critical.
- Vision Realization: Worldcoin's vision of providing a universal basic income funded by AI is revolutionary but realizing it will require widespread adoption and significant partnerships.
Final Thoughts
While Sam Altman's association with Worldcoin adds credibility to the project, investors should conduct their due diligence. The crypto space is complex, and while the potential for high returns exists, so do risks. Balancing the founder's past successes with the unique challenges Worldcoin presents will be crucial for making informed investment decisions.
Disclaimer: This article does not constitute financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.