• Worldcoin (WLD) has seen a sharp decrease in user interest and market valuation since its launch last month.
• The fully diluted market cap of WLD dropped to $14.98 billion, with the global number of WLD holders plateauing at 900 addresses.
• Concerns around data privacy have caused Worldcoin to become entangled in the broader market meltdown, leading to regulatory scrutiny across different countries.
Overview of Worldcoin
Blockchain project Worldcoin [WLD] has seen a significant decline in user interest since its much-hyped launch last month. The fully diluted market cap dropped further down to $14.98 billion, with the global number of WLD holders plateauing at 900 addresses. Additionally, concerns around data privacy have caused Worldcoin to become entangled in the broader market meltdown, leading to regulatory scrutiny across different countries.
According to a post by Token Terminal dated 17 August, about $10 billion of WLD’s fully diluted market cap has been wiped out since its debut. At the time of writing, the fully diluted market cap dropped further down to $14.98 billion. Unlike the more commonly used circulating market cap, fully diluted market cap is derived by multiplying the market price by the maximum supply of the asset – this capitalization method estimates how popular a crypto project has the potential to be once all coins are released or mined and assesses fair value before and after launch.
The price of tokens distributed freely for users‘ iris scans plummeted by more than 40%, data from CoinMarketCap showed. Additionally, during Thursday trading hours WLD tanked 10%. Although there was a temporary dip that flagged possible concern, there was also a robust recovery at time of writing..
Data Privacy Concerns & Regulatory Scrutiny
Worldcoin fundamentally differs from conventional crypto assets as they are issued after collecting users’ biometrics data with an objective of building it as public utility giving ownership to everyone – however this also led to concerns around data privacy which bogged down the project’s progress even after such high expectations from it’s launch . This led various countries like Kenya and Argentina launching investigations into legality of Worldcoin operations which only added on to markets already declining situation due to broad economic recession .
Overall , despite having sold over 400 million tokens worth about $12 billion during it’s initial offering , WorldCoin faced several difficulties due which have lead it’s value reducing significantly resulting in investors losing faith . With current situation still uncertain , it remains hard predicting if and how long will this project survive until something brings back confidence into markets .