Worldcoin, despite facing early regulatory challenges in various jurisdictions, has reported a doubled demand for its global World ID verifications during the first week of its launch. This surge in demand can be attributed to the release of new Orbs worldwide, which have significantly boosted the weekly verifications numbers. It is important to note that Worldcoin had already achieved a high verifications rate prior to its recent surge. The platform had attracted over 2 million registrations even before its official launch, indicating a strong pre-launch interest from users.
Not only did Worldcoin experience an increase in verifications, but its designated wallet, World App, also witnessed significant growth. The number of active users on the platform tripled within the first week, demonstrating a strong uptake of the Worldcoin ecosystem. Additionally, the weekly account creations on World App saw a ten-fold increase, indicating a growing user base and interest in the project.
Despite its initial success, Worldcoin has faced substantial regulatory scrutiny in several countries. Germany’s top privacy regulator has been investigating the company’s data collection practices since November 2022, highlighting concerns over privacy and data handling. In other jurisdictions such as Kenya, Britain, France, and Germany, authorities have also expressed concerns over Worldcoin’s operations and have initiated investigations.
In fact, Worldcoin’s operations in Kenya were recently suspended indefinitely pending a determination of their authenticity and legality. The Kenyan authorities have made it clear that they will take action against individuals involved in the project’s operation. This regulatory scrutiny and suspension in a key market raise questions about the future prospects and viability of Worldcoin.
Worldcoin has not only faced regulatory challenges but has also encountered criticism from prominent members of the crypto community. Peter McCormack, the host of the popular podcast ‘What Bitcoin Did,’ has criticized Worldcoin’s reliance on biometric data for identity verification. The platform requires users to scan their iris using its Orbs to confirm their human identity. Ethereum Co-Founder Vitalik Buterin, on the other hand, has suggested that biometric scanning is “sufficient” for privacy protection.
It is important to note that Worldcoin claims to comply with local laws regulating the collection of personal data across all its operating markets. However, the ongoing regulatory challenges and criticism from influential figures highlight the potential risks associated with Worldcoin’s approach to identity verification and data handling.
Despite the initial claims of success, the value of Worldcoin’s WLD token has dropped by 11% in the last seven days. According to data from CryptoSlate, the token currently trades at $2.03. On-chain data from Etherscan reveals that the project has less than 6000 token holders and has witnessed only 23,655 transfers during the same period. These figures suggest that Worldcoin’s performance may not be meeting the expectations set by its initial surge in demand for ID verifications.
Worldcoin has experienced a significant increase in demand for its global World ID verifications during the first week of its launch. However, this success has been marred by regulatory challenges across multiple jurisdictions and criticism from industry experts. The suspension of operations in Kenya and the drop in the value of WLD token raise concerns about the long-term sustainability and adoption of the Worldcoin ecosystem. Going forward, Worldcoin will need to address these challenges, ensure compliance with local regulations, and regain the trust of both regulators and the crypto community.
