Worldcoin’s price drops sharply as concerns remain unaddressed
- WLD plummeted by more than 40% since its debut last month.
- The global number of WLD holders plateaued, with only 900 addresses added since the beginning of August.
Blockchain project Worldcoin [WLD] has seen a significant decline in user interest since its much-hyped launch last month.
How much are 1,10,100 WLDs worth today?
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.
— Token Terminal (@tokenterminal) August 17, 2023
Worldcoin sinks deeper
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 the coins are released or mined. It’s also used to assess the fair value of a project before and after its launch.
The sharp drop in WLD’s valuation summed up the difficulties the Sam Altman-backed project has endured lately. The market price of the tokens, distributed freely in lieu of users’ iris scans, plummeted by more than 40%, data from CoinMarketCap showed.
Apart from issues inherent to its ecosystem, such as concerns over data privacy and mining, the coin became entangled in the broader market meltdown. WLD tanked 10% during the Thursday trading hours.
Although the price made a robust recovery at the time of writing, the temporary dip flagged a possible concern.
Regulatory scrutiny impacting Worldcoin?
Worldcoin fundamentally differs from conventional crypto assets in the way that they are issued after collecting users’ biometrics data. The objective was to build the project as a public utility, giving ownership to everyone.
However, concerns around data privacy have bogged down the project which started with a bang. Countries like Kenya and Argentina began launched investigations into the legality of Worldcoin’s biometric data collection, with the former even suspending the token in its jurisdiction.
Realistic or not, here’s WLD’s market cap in BTC’s terms
Consequently, most indicators of WLD have been disappointing. The transaction count fell off the cliff after the initial frenzy, per Santiment data. The global number of WLD holders plateaued, with only 900 addresses added since the beginning of August.
The weighted sentiment continued to trend in the negative zone, implying that perception around the asset was one of pessimism.