Worldcoin before being listed on exchanges
On July 24, Worldcoin – the crypto project led by OpenAI CEO Sam Alman was expected to be listed on many major exchanges such as Binance, Huobi, OKX, Bybit, etc. The listing has been awaited by a lot of people because Worldcoin seems to be distributing tokens as rewards for those who participated in testing the Orb product. Via a custom biometric device called the Orb, Worldcoin users can verify their identity using the Proof of Personhood mechanism and save data on the blockchain.
According to the Worldcoin team, World ID will work as a global digital passport, which can be stored in the user’s phone. With World ID, users can verify their identity without other information like phone numbers or email addresses.
With these interesting utilities, the project is considered to have great potential, but there is still a lot of controversy surrounding Worldcoin, most of which are related to user information security. Fortunately, Worldcoin still maintains its objective to address online identity authentication and income inequality.
As CoinMarketCap updated before it was listed, Worldcoin showed FDV up to over $20 billion depending on each exchange. This proved the interest of investors in the project with huge capital and potential technology like Worldcoin.
The community is increasingly interested in the project when it is reported that Worldcoin will reward users who experience Worldcoin early. According to 0xScope, Worldcoin has begun distributing tokens to more than 90,000 eligible wallets, each of which will receive at least 25 WLD.
This news brought joy to over 90,000 investors, but also brought sadness to those who minted NFT on the Zora network. These NFTs have plummeted from the price of 0.025 ETH, after the WLD airdrop event was released. All users need to do to get paid 25 WLD is to scan the retina on Worldcoin’s test app.
On July 24, as Binance recorded, WLD quickly surged and peaked at $5.29, equivalent to more than $52 billion in FDV. After that, WLD was trading around $3.1. Each person can receive $75 (1 WLD worth $3) if they successfully verify their identity through Orb.
Should you buy WLD now?
As mentioned above, WLD is currently trading around $3.1, which is relatively high compared to projects with similar capital. Investors need to consider carefully before they want to make a profit from WLD right now.
Because, with only nearly 1.5% of the supply allocated to the market for early-experienced investors and market makers, many investors feel scared when looking at the current price of WLD. Investor Ash Crypto shared, he is having a deja-vu feeling because it reminds him of the ICP project and advises people not to invest in Worldcoin now.
However, investors should remember that WLD price can surge very quickly as most of the total supply is used to reward users using Worldcoin. With its popularity, Worldcoin will certainly attract a large number of users to experience, causing the amount of tokens to skyrocket in the near future.
At the same time, investors who wish to invest in WLD should also pay attention to Worldcoin’s token allocation schedule. According to information provided by the project, its 7.5 billion tokens will be allocated over the next 10 or 15 years.
With the current high valuation and FDV, investing in WLD is considered to be relatively risky. If investors still decide to put money into the project, they should probably split their capital to reduce risk and continuously update WLD’s on-chain information to find the right time.
In case you don’t want to take the risk but still own WLD, you can sign up on a waitlist on World App. Worldcoin plans to roll out 1,500 Orbs worldwide this year.
What does Vitalik say about Worldcoin?
On his blog, Vitalik Buterin – Founder of Ethereum posted a long article about the technology that Worldcoin is currently pursuing. He supports the development of Proof of Personhood, but does not put too much faith in it.
Creating an efficient and reliable proof of personhood for users who are unfamiliar with blockchain technology can seem quite difficult. In principle, the concept of Proof of Personhood is very valuable, but it has its own risks. At the same time, the world is not only worried about Worldcoin, they are also concerned with other biometric-related projects such as Proof of Humanity, Idena, BrightID, etc. because they can cause many risks such as leakage of personal information, coercion of authoritarian governments, and more.
According to Vitalik, Proof of Personhood is valuable because it will solve problems such as spam, centralized power. This solution will help users to limit their dependence on centralized agencies with little personal information provided. If Proof of Personhood cannot solve the above problems, then even decentralized governance can be dominated by wealthy actors and various hostile factions.
Many applications have solved the problem of verification by using government-supported identification systems such as IDs, passports or credit cards. However, the problem is that users will suffer damage and invasion of privacy if those applications are hacked. Proof of Personhood can solve this problem by using ZK-SNARK technology.
Vitalik also points out some other security risks of Proof of Personhood such as:
- Privacy: The registry of iris scans may reveal information. At the very least, if someone else scans your iris, they can check it against the database to determine whether or not you have a World ID. Potentially, iris scans might reveal more information.
- Accessibility: World IDs are not going to be reliably accessible unless there are so many Orbs that anyone in the world can easily get to one.
- Centralization: The Orb is a hardware device, and we have no way to verify that it was constructed correctly and does not have backdoors. Hence, even if the software layer is perfect and fully decentralized, the Worldcoin Foundation still has the ability to insert a backdoor into the system, letting it create arbitrarily many fake human identities.
- Security: Users’ phones could be hacked, users could be coerced into scanning their irises while showing a public key that belongs to someone else, and there is the possibility of 3D-printing “fake people” that can pass the iris scan and get World IDs.
According to Vitalik, there is no perfect solution to verify a person’s identity. We should have at least three different approach models with distinct strengths and weaknesses, he suggested.
He called for community accountability in the process with audits, checks and balances. “A world with no proof-of-personhood seems more likely to be a world dominated by centralized identity solutions, money, small closed communities, or some combination of all three.”