Worldcoin tanks by over 50% as data privacy concerns mount
- WLD’s value declined by more than 50% in the first month of the project’s launch.
- This has been a result of the regulatory concerns around the project.
Since Worldcoin’s [WLD] mainnet launch a month ago, the regulatory concerns that have since plagued the project have resulted in a more than 50% decline in the value of its token.
How much are 1,10,100 WLDs worth today?
According to data from CoinMarketCap, trading at $1.27 at press time, the price per WLD token has dropped by 53% since its $2.71 price high on the day the project launched.
Worldcoin was beset with problems after it launched
Since Sam Altman’s Worldcoin launched, data privacy concerns have been raised by regulators in various countries across the world.
For example, a week after the project went live on the mainnet, the French data protection agency Commission Nationale Informatique & Libertés (CNIL) stated,
“The legality of this collection seems questionable, as do the conditions for storing biometric data.”
Likewise, in a statement released by the United Kingdom’s Information Commissioner’s Office on 31 July, Worldcoin was fraught with data privacy concerns that regulators in the region intend to investigate.
On 2 August, via a post on Facebook, the Kenyan government announced the suspension of the operations of Worldcoin pending a risk assessment by relevant government agencies.
These regulatory scrutinies have put downward pressure on the value of its WLD token. Social activity around the token has dwindled in the last month, suggesting that interest in it has dropped significantly.
According to on-chain data provider Santiment, WLD’s social volume and social dominance have fallen by 95% and 74% in the past 30 days. This indicates a severe drop in the hype around the project.
With mounting regulatory issues, the daily demand for WLD has also dropped. Since 26 July, the daily account of addresses created to trade WLD has trended downward and has declined by 98%.
In addition, the count of daily addresses involved in WLD transactions has steadily declined since its price began its descent. For context, as of 25 July, 1673 addresses completed WLD transactions. However, on 25 August, less than 150 addresses transacted the altcoin.
Is there a silver lining?
Despite the price drop in the last month, a further assessment of WLD’s profitability revealed that its holders have continued to book profits.
Data from Santiment at press time showed that the ratio of WLD’s on-chain transaction volume profit to loss was 1.998.
A ratio of 1.998 meant that for every $1.998 of profit made on WLD transactions, there was $1 of loss. This was a positive ratio, which suggested that there were more profits than losses on WLD transactions.
Realistic or not, here’s WLD’s market cap in BTC’s terms
In other words, the profit generated from daily on-chain transactions was almost twice the number of losses incurred.
However, while daily traders have found a way to circumvent losses on their daily trades, most WLD holders remain at a loss. According to IntoTheBlock, 98% of WLD token holders were “out of money” at the time of writing.