Worldcoin is a project that has aroused extreme emotions from the very beginning. On the one hand, it offers a vision of a global digital identity and a potential universal basic income. On the other hand, its method of verifying identity by iris scanning raises serious concerns about data privacy and security. Assessing the potential of this cryptocurrency therefore requires an understanding of both its technological innovation and the fundamental risks that accompany it.
Understanding cryptocurrency
At the core of Worldcoin is the ambitious idea of creating a globally accessible identification and finance system. Sam Altman, a figure well known in the tech world as the co-founder and CEO of OpenAI, the company responsible for the development of ChataGPT, is behind the project. This connection is not accidental. The main goal of Worldcoin is to solve one of the most serious problems of the artificial intelligence era: how to distinguish a human from a bot on the internet. The system is intended to provide “Proof of Personhood”, which in the future could become the foundation for a fair distribution of resources, for example in the form of a global basic income.
The project consists of two key elements: World ID digital identity and the WLD cryptocurrency. World ID is a kind of digital passport that the user receives after a one-time biometric verification. The WLD token, in turn, is a reward for joining the system and a tool that is to be used to manage the entire ecosystem in the future. This dual nature makes it more than just another speculative resource. The creators want it to become the basis of a new, decentralized digital economy, available to everyone, regardless of their location or material status.
Despite its lofty assumptions, since its launch in 2023, Worldcoin has been a highly volatile asset and its value fluctuates wildly. It is listed on major cryptocurrency exchanges, which provides it with a lot of liquidity but at the same time exposes it to market forces.
Specifics and technology
At the heart of Worldcoin’s technology is a physical device called the Orb. It’s a silver, futuristic-looking sphere equipped with an advanced camera system that scans the iris of the eye to create a unique biometric code. This process, dubbed IrisCode, generates a unique identifier that is not associated with any personal information. The Worldcoin Foundation ensures that the original iris image is permanently deleted from the device by default, and only the mathematical hash generated from it is uploaded to the network. It is this hash that is the basis for issuing the aforementioned World ID, confirming the uniqueness of a given person in the system.
The WLD token, awarded to verified users, is technically an ERC-20 standard token. However, due to high transaction costs and scalability issues, the project has shifted most of its operations to the so-called Layer 2 solution – the Optimism network. This move significantly reduced fees and sped up transfers, making the system more useful on a day-to-day basis. Moreover, in 2024, the developers announced the launch of their own network, World Chain, which is expected to be even better optimized for mass adoption and serving millions of users. The availability of the token on almost every major cryptocurrency platform proves its high recognition.
The entire Worldcoin ecosystem is based on several pillars, which together make up its unique proposition:
- World ID is a digital passport that proves that its holder is a unique, living person, which is crucial in distinguishing humans from AI.
- The WLD token is the project’s native cryptocurrency, awarded to verified users and intended to be used to co-decide the fate of the network in the future.
- World App is a wallet app that integrates all features, allowing you to store World ID and send and receive cryptocurrencies, including WLD, Bitcoin or Ethereum.
Development and interest
Worldcoin has seen an impressive increase in the number of users. In less than a year since its launch, the verified database has exceeded 5 million, and the World App boasts over 10 million downloads in 160 countries. These numbers demonstrate the huge interest the project has generated around the world, particularly in developing countries, where the promise of free WLD tokens has proven to be extremely enticing. This interest is regularly fueled by new partnerships and integrations, and the token itself is available on virtually every major trading platform in the world.
However, such a rapid expansion and controversial verification method could not escape the attention of regulators. In many countries, serious doubts have been raised about the project’s compliance with local data protection laws. Kenya was the first to suspend Worldcoin’s operations as early as August 2023. Other countries followed suit. The Spanish DPA ordered a temporary halt to the collection and processing of data, and similar steps were taken in Portugal. Investigations into the practices of Tools for Humanity, which is developing the project, are also underway in Germany, France, Argentina and the United Kingdom. The main allegations relate to the lack of transparency, the potential processing of data of minors and compliance with the EU GDPR regulation.
These legal issues directly translate into the perception of the project and the listing of its token. The WLD price is extremely sensitive to any reports of further investigations or bans.
The main regulatory and reputational risks that constantly affect the quotations are:
- collection of biometric data on a massive scale,
- centralization of the project in the hands of one foundation,
- legal uncertainty in key jurisdictions;
- potential security gaps and the risk of data leakage.
A lucrative investment?
Analyzing Worldcoin as a potential investment leads to an unequivocal conclusion: it is an asset in the category of high risk and high potential return. On the one hand, if Sam Altman’s vision materializes and World ID becomes the global standard for digital identity, the value of the WLD token could increase many times over. Success would mean laying the foundation for a new digital economy in which WLD would act as a key transaction and governance currency. However, this optimistic scenario assumes overcoming gigantic regulatory hurdles and gaining the trust of billions of people.
On the other hand, the risk of total failure is just as real. A possible global ban on the collection of biometric data, severe financial penalties or a single, large data leak could irretrievably bury the project.
The decision to invest your capital in Worldcoin therefore requires a careful assessment of your own risk tolerance. Advanced players, such as a professional pro-trading firm, can analyze capital flows and market sentiment using specialized tools that many exchanges offer. For example, the 1cft platform and similar services provide real-time data, which is crucial with such a volatile asset. However, even specialist pro-trading firm 1cft is approaching projects like Worldcoin with a lot of caution. The decision to purchase WLD should be preceded by an in-depth, independent analysis. A retail investor should first of all observe the development of the regulatory situation and the pace of actual adoption of the technology, not just speculative popularity. Ultimately, it is on platforms such as 1cft or other global services that the daily battle for the price of the token takes place.
Worldcoin is undoubtedly one of the most ambitious and polarizing experiments in the history of cryptocurrencies. Its success could redefine the concept of digital identity and open the way to global financial systems based on the idea of fair distribution. The technology behind the project is innovative and the vision of the creators is extremely appealing. At the same time, the project has been burdened with a huge burden of ethical and legal controversies from the very beginning. Scanning iris on a massive scale raises legitimate questions about the limits of privacy and the security of our most sensitive data.