HomeCryptoTrouble for Worldcoin (WLD) by Sam Altman

Trouble for Worldcoin (WLD) by Sam Altman

More trouble for Worldcoin (WLD), the crypto project of the co-founder and CEO of OpenAI (ChatGPT), Sam Altman. 

In fact, Argentina has been added to the list of states concerned about the Worldcoin project’s collection of personal data. 

The collection of personal data

The Worldcoin project aims to give everyone a digital identity. 

However, whereas the classical identity is assigned by states, Worldcoin’s digital identity is assigned by a private organization. 

In order to assign people a digital identity, Worldcoin collects personal data, particularly iris scans. This creates concerns, because it is not known whether such personal data will be kept securely, and especially because there are fears that Worldcoin may end up monetizing it by selling it.

Indeed, as Reuters recently reported, the general manager for Europe at Tools For Humanity, or the company behind the project, admitted that Worldcoin could make the data it is collecting available to companies and governments. 

The fact that providing such personal data to this private organization is entirely optional does not mean that they are granted the right to do what they want with it even beyond what privacy laws allow. 

This is why there are states that disagree with this data collection activity, precisely because they suspect possible de facto illicit uses. 

Argentina vs Sam Altman and Worldcoin (WLD)

The latest country that has begun to raise doubts, for now, is Argentina. 

Indeed, the government headed by Alberto Fernández has announced that the AAIP (Agencia de Acceso a la Información Pública) is investigating Worldcoin’s handling of personal data in Argentina. 

The AAIP is specifically the government authority in charge of the protection of personal data, and it is investigating whether the security measures taken in the context of protecting users’ privacy are being respected. 

With its investigation, it will analyze Worldcoin’s processes and practices in relation to the collection, storage and use of personal data, and take appropriate measures to address any problems, to ensure that the company complies with security and privacy standards.

It all stemmed from a legal complaint filed by Daniel Monastersky, partner at Data Governance Latam, based on possible violations of the Data Protection Act.

Other states

In other states they have already gone much further.

For example, in Kenya, the government has temporarily blocked Worldcoin’s data collection, and all associated local activities, because it suspects precisely privacy law violations. 

Minister Kithure Kindiki said that the relevant agencies have begun investigations to determine the legality of this activity, and until they have determined that it is legal it will remain suspended. 

Moreover, ChatGPT already had problems with collecting and storing personal data, so much so that for example in Italy the service was temporarily blocked a few months ago

Nowadays, the protection of personal data is considered a fundamental right of the individual in many countries, so much so that most have specific laws dedicated to the issue. The doubt is that the Worldcoin project does not always comply with all existing regulations in this regard. 

Worldcoin (WLD): the reaction of Sam Altman’s crypto to the market

The Worldcoin project also has its own crypto token. It is called WLD and has been issued in ERC-20 format on the Ethereum blockchain. 

Those who have their iris scanned by Worldcoin for identity verification are actually given WLD tokens. This is why so many people are doing this, unaware of the risks they take regarding the proper storage of their personal data. 

WLD debuted on the crypto markets on 24 July, or less than a month ago, and immediately hit its current all-time high at nearly $3.6. 

It is now already losing nearly 60% of its market value from that high, with a descent that began on 2 August, after a brief period of apparent stabilization around $2.2. 

On 8 August it fell below $2, and in the last 24 hours alone it has lost 7%. The accumulated loss during the last seven days is 25%, or a quarter of the value it had only seven days ago. 

What’s more, the longer the airdrop continues, the more WLD should end up on the market, since hardly anyone who gets them for free decides to hold them all indefinitely. Therefore, it is possible that the market value may fall further due to further increased selling pressure. 

Combined with the fact that of the 10 billion WLD tokens created so far, only 124 million have been distributed, the assumption of a further decline in price over time seems even more likely. 

Universal basic income

The ultimate goal of the Worldcoin project would be to give everyone a universal basic income (UBI), but this goal generates enormous doubt. 

The reason is that if, as is to be expected, this income is delivered in WLD tokens, it will mean that more and more WLD tokens will end up in the market. 

And even if at some point they decide to create their own blockchain, and turn the token into a real cryptocurrency, this issue would not change at all. 

In other words, there is a serious risk that WLD tokens created out of thin air and given away to people in the form of universal income will end up becoming so inflated that they lose much of their real market value. 

In that case, their distribution would end up being something irrelevant and almost totally useless. 

For this reason, there are many who believe that the project may ultimately fail to fulfill the promises it is making.

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".
RELATED ARTICLES

MOST POPULARS

GoldBrick