A bill that seeks to regulate the activities of companies that scan the eyes of their users, like Worldcoin, has been recently introduced in Buenos Aires. The law aims to protect the app users’ rights and help them to secure and determine the destination of the biometric data collected by these entities. Eye Scanning Bill […]
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Brace For Impact: Worldcoin Team Plans To Sell 1.5 Million WLD Tokens Every Week For 6 Months
Worldcoin (WLD) could be the victim of a significant downtrend in the coming weeks. The team plans to sell as many as 1.5 million WLD tokens over the next six months, which could bring about massive selling pressure and affect the token’s price.
Details About The Proposed WLD Token Sale
Worldcoin revealed in a blog post that World Assets (a subsidiary of the Worldcoin Foundation) will sell between 500,000 and 1.5 million Worldcoin tokens weekly to a group of institutional trading firms outside the United States. This token sale will be done through private placements and is expected to last up to six months.
Therefore, as many as 36 million WLD tokens could be sold under this arrangement. Interestingly, these tokens do not form part of the current circulating supply, as Worldcoin stated that “the circulating supply of WLD will thus increase correspondingly” as the token sales progress. That means Worldcoin’s circulating supply could see an 18.6% increase to over 229 million WLD tokens once the private sale is done.
This development is undoubtedly a cause for concern for WLD holders, given the impact it could have on the crypto token’s price action. However, Worldcoin tried to downplay the effect of this token sale, noting that a weekly sale of between 500,000 and 1.5 million WLD tokens represents “less than 0.1% to 0.4% of the current weekly trading volume.
Meanwhile, World Assets “may seek to include a 40-day lock-up period restricting the resale of WLD by trading firms,” Worldcoin remarked. This could also help reduce the high volatility that could arise from an immediate sell-off by these trading firms.
The Worldcoin Ecosystem
WLD is the native token of Worldcoin, a project that focuses on the digital verification of humans. Users in the Worldcoin ecosystem get verified through a device called the “Orb.” Since launching last year, the project, co-founded by Open AI’s CEO Sam Altman, has drawn criticism, with many, including Ethereum’s co-founder Vitalik Buterin, raising privacy and legal concerns.
Authorities in different countries have investigated the project as they believe its data collection method may have breached certain privacy laws. NewsBTC also recently reported that Worldcoin faces a potential fine of .2 million in Argentina for violating the country’s National Consumer Protection Law.
Despite the regulatory scrutiny, the team is still looking to expand. In the blog post, they hinted that the proceeds from this token sale will be directed towards meeting the “increasing demand for orb-verified World IDs around the world.”
At the time of writing, Worldcoin is trading at around .4, down over 6% in the last 24 hours, according to data from CoinMarketCap.
Latam Insights: Brazil Bans Crypto for Gambling, Worldcoin Battles Buenos Aires
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Brazil bans the use of cryptocurrency for gambling-related payments, and Worldcoin faces fines for alleged abusive behavior in Buenos Aires. Brazil Passes Rules Banning Cryptocurrency Payments for Gambling Brazil has legalized the use […]
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Worldcoin Rejects Buenos Aires’ Claims Regarding Abusive User Contract Clauses
Worldcoin, the digital biometric identification project, has rejected the claims made by Buenos Aires regarding possible infringements of customer protection laws. The organization told local sources that it answered Buenos Aires’ requirements since January to show the transparency it exercises in its operations. Worldcoin might face a deeper investigation if a local proposal gets approved. […]
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Worldcoin Foundation Announces ‘World Chain’ for Enhanced Human-Centric Apps
Worldcoin is set to introduce a new blockchain called “World Chain,” which is designed to give precedence to human users over bots, purportedly enhancing both utility and accessibility. The Worldcoin Foundation stated that this platform will be deeply integrated with the Worldcoin protocol, employing the World ID’s proof of personhood to promote a user-centric approach […]
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Worldcoin Faces $1.2 Million Fine In Argentina For Law Violations; WLD’s Price Reacts
In recent months, Sam Altman’s open-source protocol Worldcoin (WLD) has faced increasing legal challenges as Portugal and Spain cracked down on its biometric data collection practices. Argentina has joined the list, issuing an indictment against Worldcoin after detecting allegedly abusive clauses in user contracts.
Worldcoin Faces Legal Scrutiny In Buenos Aires
Buenos Aires authorities have identified discrepancies between Worldcoin’s reported data handling practices and findings from provincial inspections, raising concerns about the storage and deletion of biometric data and potential infringements on user rights.
The Ministry of Production, Science, and Technological Innovation of the province of Buenos Aires ordered the indictment of Worldcoin following an investigation by the Provincial Directorate for the Defense of Consumer Rights.
The investigation revealed the inclusion of “abusive clauses” in the company’s accession contracts, which were allegedly in violation of the National Consumer Protection Law.
Undersecretary Ariel Aguilar, responsible for Commercial Development and Promotion of Investments in the province, expressed concerns about the lack of transparency surrounding Worldcoin’s data processing procedures.
Aguilar questioned whether biometric data was being stored or immediately deleted, the existence of databases storing personal data of Argentine users, and the complexity of the contracts and operation of the entire system.
The province’s inspections uncovered multiple violations in the adhesion contracts, including the “Terms and Conditions of Use,” “Privacy Notice,” and “Data Consent Form.”
Notably, the company failed to display signs indicating the minimum age requirement of 18 for accessing the service, potentially leading to the scanning of the personal data of minors.
Contradictions In Worldcoin’s Handling Of Biometric Data
Contradictions were also found between the company’s reported use, protection, and storage of biometric data collected from the faces and eyes of Argentine users. It appears that this private information is being stored in Brazil.
Additionally, abusive clauses were identified that allowed the company to interrupt the service without providing any repair or refund.
The contracts also allegedly forced users to waive collective redress claims and subjected them to foreign laws, specifically those of the Cayman Islands, with disputes to be resolved by arbitration in California, United States, violating Argentina’s Civil and Commercial Code. Worldcoin now faces potential fines of up to 1 billion pesos or .2 million.
The company had been operating in various cities in Buenos Aires. Worldcoin collected personal biometric data, such as iris and facial scans, in these locations through its Orb technology device.
In exchange, users were offered the World App financial application on their phones and received cryptocurrency from Worldcoin’s native token, WLD.
Unexpected Upswing
Despite facing increasing legal scrutiny in recent months, including the latest development in Argentina, the token associated with the Worldcoin protocol, WLD, has experienced an unexpected surge of 2.6% within the past 24 hours, currently trading at .80.
However, when examining key metrics, it becomes evident that the overall market correction has impacted WLD. CoinGecko data reveals that WLD’s trading volume in the last 24 hours amounts to 9,113,250, indicating a decrease of 7.10% compared to the previous day.
Additionally, WLD has witnessed a significant decline of over 58% from its all-time high of .74, reached on March 10.
Moreover, the token’s market capitalization has experienced a notable decrease. Since its peak of .4 billion recorded on March 17, the market cap has fallen below the billion-dollar level, currently standing at 0 million as of the time of writing.
Featured image from Shutterstock, chart from TradingView.com
Worldcoin Faces Over $1 Million in Fines in Buenos Aires for Legal Violations
Worldcoin, the biometric iris scanning digital ID organization, is being accused by the government of Buenos Aires of several transgressions, including contradictions regarding the treatment of users’ digital information. Buenos Aires considers that the company exposes users to several unfair clauses, including those describing the possible interruption of the service. Worldcoin Faces Over Million […]
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Latam Insights: Brazil to Offer Bitcoin Futures, Paraguay Battles Mining, Worldcoin Wins in Chile
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: the Brazilian stock exchange will offer bitcoin futures contracts, Paraguay advances measures to curb illegal bitcoin mining operations, and Worldcoin gets a legal victory in Chile. Brazilian Stock Exchange B3 to List Bitcoin […]
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Worldcoin (WLD) 12% Rally Hits A Snag: Portugal Demands Halt To Biometric Data Collection
In a recent development, Portugal’s data regulator, the National Commission for the Protection of Data, also known as the CNPD, has issued an order to stop Sam Altman’s iris scanning project, Worldcoin, from collecting biometric data for 90 days.
Worldcoin’s Compliance Under Fire
According to a Reuters report, the CNPD’s suspension specifically targets the Worldcoin Foundation, a memberless entity based in the Cayman Islands, described on its website as the sole member and director of World Assets Ltd, a company registered in the British Virgin Islands responsible for issuing Worldcoin tokens to sign-up participants.
The CNPD cited an alleged “high risk” to citizens’ data protection rights as the main reason for its urgent intervention. The regulator expressed concerns about the “unauthorized” collection of data from minors, the lack of information provided to data subjects, and the inability to delete data or withdraw consent.
The halt order also noted that over 300,000 individuals in Portugal had provided their biometric data to Worldcoin, leading to numerous complaints being lodged with the CNPD.
Jannick Preiwisch, the data protection officer at the Worldcoin Foundation, responded to the CNPD’s order by stating that Worldcoin is “fully compliant” with all laws and regulations about biometric data collection and transfer. Preiwisch emphasized the company’s zero-tolerance policy for underage sign-ups and its commitment to addressing any reported incidents.
Worldcoin has recently transitioned to “Personal Custody,” aiming to give users control over their data, including options for deletion and future use. The CNPD’s order to stop data collection is considered temporary, allowing for additional due diligence and analysis of complaints during the ongoing investigation.
Privacy Storm Engulfs Worldcoin
The Regulatory scrutiny of Worldcoin extends beyond Portugal. As NewsBTC reported, Spain’s data protection watchdog issued a three-month ban earlier this month in response to privacy complaints, and Kenya suspended Worldcoin’s operations in August 2023.
Moreover, the Bavarian State Regulatory Authority, acting as the lead authority in southeastern Germany, is currently investigating Worldcoin under European Union data protection rules due to the presence of a German subsidiary owned by Tools For Humanity, the company behind Worldcoin.
As the investigation into Worldcoin’s data collection practices continues, the project faces significant challenges in addressing regulatory concerns and maintaining public trust in its ambitious vision. According to its website, the project claims to have garnered over 4.5 million sign-ups from individuals in 120 countries.
Regulatory Hurdles Fail To Dampen WLD’s Performance
Despite the recent regulatory challenges faced by Worldcoin, the decentralized cryptocurrency has managed to maintain its gains of 12% over the past seven days. After reaching an all-time high (ATH) of .95 on March 10, the project’s native token, WLD, experienced a sharp drop to .24 but has since recovered.
Currently trading at .01, WLD has capitalized on the overall market rebound and its seven-day uptrend, surging by almost 9% in the past 24 hours.
The trading volume for WLD in the last 24 hours is 6,136,329, indicating a significant 65.10% increase compared to the previous day, suggesting renewed interest in the token.
Looking ahead, the .5 level is expected to provide the nearest resistance for the WLD token, followed by the .14 mark, should the rally continue. On the downside, the .36 level is the closest support on the daily chart.
In a potential downtrend, failure to hold this support level could decline toward the mark, with the next significant resistance at .93.
Featured image from Shutterstock, chart from TradingView.com
Kenya Resists US Government’s Lobbying for Worldcoin, Considers Limiting Use of Tiktok
The U.S. government has attempted to persuade Kenyan officials to lift the suspension of Worldcoin’s operations in the country, but these overtures have been rejected, the Kenyan Interior cabinet secretary has said. The Kenyan government is also considering restricting officials’ use of the social media platform Tiktok. No Review of the Suspension Decision The Kenyan […]
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