Worldcoin (WLD) Craze: Everything You Need to Know!

Worldcoin (WLD) has been very popular lately. WLD token took its place on the market on July 24 for 15 cents. Within a few hours, it reached $5.05, up 1500%. One of the most popular artificial intelligence projects. It has also been listed on top exchanges like Binance, Bybit, Huobi. However, within 2 days of launch, the project finds itself in the middle of some major controversy.

Worldcoin discussions

In the initial discussion, the Ethereum founder drew attention to 4 major risks associated with Worldcoin. In the second debate, he is apparently one of the first investors of Worldcoin, one of the biggest crypto scammers. On the other hand, the list of discussions goes on and on. So, should you really get into Worldcoin WLD or stay away because of its OpenAI connections?

OpenAI CEO Sam Altman’s ambitious cryptocurrency and digital identity project Worldcoin hit the market on Monday after years of development. The project promises to verify people’s identities by scanning their retinas. Thus, it reveals a potential way to combat online bots and fake accounts. The Worldcoin Protocol was launched after migrating to the OP Mainnet, formerly known as the Optimism Layer-2 blockchain. Worldcoin’s native token WLD rose on Monday. The team then published a whitepaper explaining its tokenomics. To be honest there are some big concerns about this.

Worldcoin Discussions

Worldcoin co-founder Alex Blania declined to reveal the token’s distribution model. In a video that surfaced on Twitter, Alex Blania refused to answer the host’s question about Worldcoin WLD’s token distribution during an interview with Bankless with co-founder Sam Altman. He also said he could not answer the question, citing regulatory uncertainty in the US.

Snowden took to Twitter to criticize Worldcoin’s retina scan plans. Worldcoin aims to be a financial and identity network. It has an app for payments. It uses biometric data from shiny, metal orbs to create controversial so-called World Identities. Snowden took to Twitter to tell his 5 million followers about his problems with Worldcoin.

Using the human body for crypto

Worldcoin says the original image of each user’s eyes: “will not need to be stored or uploaded.” But Snowden says, “You save the hashes generated by the scans. Hashes that match future scans. Don’t catalog the pupils.” Says. Also, Snowden continued: “We use ZK-proof!” Great, clever. Still bad. The human body is not a ticket punch.” says.

Many at Crypto Twitter mocked the concept, including anticipating an inevitable data leak that could result in biometric information being leaked and sold online. Others pointed out that there is no guarantee that the data will not fall into the hands of third parties.

Vitalik thinks World ID can be abused

Ethereum co-founder published an article. Accordingly, he is of the opinion that an effective, reliable proof-of-personality system like Worldcoin “seems to be very valuable.” But he warns that there are great risks in the development race. The first concern is about privacy and the act of scanning one’s retina. Buterin fears this could capture a lot more data than meets the eye, including a person’s gender, ethnicity, and even some medical conditions.

Buterin’s most practical argument is accessibility. It’s also about how likely it will be for anyone who wants a World ID to get one. Buterin thinks that even if the Orbs become productive, the troubles won’t end there. He stated that there is nothing to prevent a government from banning Orbs in its own country or using this technology to oppress citizens.

Other concerns

His third concern was about centralization. “Even a single Orb generator, if malicious or hacked, can generate an unlimited number of fake retina scan hashes,” Buterin said. It can also give them World Identities,” he warned.

The fourth was about security. Looking at cryptocoin.com, Buterin believes that an “unlimited number of identities” can be generated if Orbs mistakenly authenticate the retinas of AI-generated photos or 3D prints of fake people. There is also the danger of someone selling or renting their World ID to someone else or losing it after a phone hack. He concluded by emphasizing that he believes there are dangers in a world where personality is not proven. He also said that building a solid system will not be easy or fast.

FTX founder SBF, one of the oldest investors in Worldcoin WLD

There is a situation that Duo Nine rightly said in his tweet. “Buying Worldcoin WLD is giving money to a scammer at this point.” Now I will come to my personal doubts and opinions. WLD was trading at $2.19, gaining 30% on the day. This has happened despite criticism from almost every corner of the crypto industry. My area of ​​concern as a trader is WLD’s circulating supply vs. supply cap.

With only 1% of the total circulating supply currently in circulation, there is a high risk of real dilution in Worldcoin WLD. Because what will happen once more cryptocurrencies are added to circulation? Especially if new demand does not come in to support the price, its value will fall. But the problems don’t end there. Try to understand this. The maximum supply of WLD token will be fixed at 10 billion WLD for at least the first 15 years of the network. However, after that, in 2038, an inflation rate of 1.5% can be determined by the voters. We have seen in the past that tokens with an inflationary model do not do well.

The probability of an increase in supply

43 million of the token’s circulating supply is reserved for early users. 100 million loaned to five market makers outside the US. This is a significant risk. The duration of these loans is three months. It also gives market makers the option to purchase WLD tokens instead of returning the credit. But let’s say these market makers don’t see a huge market demand for Worldcoin WLD. They will easily lower the price and then repurchase. What can await token holders like you and me?

We have no incentive to facilitate liquidity or hold these tokens. In the very short term, there is likely to be some price stability due to the liquidity supported by market makers. But in the medium and long term, this is speculative at best.

Critics of the project

Twitter co-founder Jack Dorsey reacted with a disappointed face emoji, showing his dislike and concern for the project and the size of its army of enthusiastic contributors. Indeed, Dorsey had previously made an ominous comment about the launch of the project: “Visit the Orb or the Orb will visit you.”

Meanwhile, the co-founder of SlowMist, the decentralized finance (DeFi) security platform known as Cosine, has described Worldcoin as a “bad creation” if it succeeds, although it is “highly likely to fail.”