Worldcoin Explained: Is it a Scam or Revolutionary Solution?

Key Takeaway

• The use of iris scanning by Worldcoin raises issues of privacy and data collection.
• Although pessimism about tokenomics remains, WLD rose 17.82% in the past day.

OpenAI CEO Sam Altman’s latest “Iris biometric crypto project, Worldcoin,” has been making waves in the online community since its inception. Its goals include protecting individual privacy, bolstering democratic procedures, and maybe adopting UBI supported by artificial intelligence.

Despite the positive reception, the project has received a lot of criticism from concerned online residents who have held up placards reading “Scam” and “Rekt soon,” among other negative sentiments.

Why Are There So Many Negative Opinions Regarding Worldcoin?

The widespread doubt about iris scanning is fueling the growing rumors. Vitalik Buterin, Ethereum’s creator, is wary of the technology because of the potential for abuse in the collection of private information such as sexual orientation, race, and health.

He also mentioned the problem of having insufficient access to the necessary Orbs scanning machines. Since there are just a few hundred of them, widespread adoption is unlikely.

Others, like the X (Twitter) account @00forrest, have gone so far as to call Worldcoin a hoax. They claim the project’s enormous fully diluted valuation and poor tokenomics prove their point. A sizable portion of the supply is also under the control of insiders and market makers. As a result of this, there is apprehension that those who got in early could suffer a loss of investment capital due to the high supply and the possibility of market manipulation.

It hasn't even been out a day and Worldcoin is already dumping their bags on retail

Market makers are a helluva drug https://t.co/LT7Munz6p0

— Steven Lubka (@DzambhalaHODL) July 24, 2023

Worldcoin co-founder Alex Blania’s evasive response to a question regarding the coin’s tokenomics, citing uncertainty in legislation, has only served to fuel the fire. Some people even started to doubt the initiative’s honesty as a result.

Worldcoin’s token, WLD, has increased by more than 17.82% in the last 24 hours despite widespread doubt and distrust. Like any very big undertaking, maybe it works out and maybe it doesn’t,” Sam Altman wrote on Twitter. No matter what, we appreciate the feedback from our detractors more than anyone else.

Finally, the criticism of Worldcoin can be broken down into three main areas: proof-of-personhood technological fears, market manipulation concerns, and tokenomics. However, despite these challenges, the project team continues to look forward and concentrate on making progress online.