Cryptocurrencies are quickly becoming a popular way to invest money. One of the newest tokens to hit the market is the Worldcoin (WLD). If you’re considering investing in this relatively new currency, it’s important to understand the basics of Worldcoin. In this article, we’ll cover what exactly Worldcoin is, who founded it, how to buy it, and an analysis of its safety and price.
Contents of the article:
Who are the founders of the Worldcoin?
What Worldcoin (WLD) trading pairs are available on XT.COM?
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Worldcoin (WLD) blockchain explorer
What is Worldcoin?
The primary objective of the Worldcoin project is to establish an extensive identity and financial network that functions as a public utility, ensuring equitable ownership for all.
The cornerstone of the Worldcoin system is World ID, a globally recognized identity network that protects user privacy. With World ID, individuals can validate their humanity online, while safeguarding their personal information using zero-knowledge proofs.
To participate in the Worldcoin protocol, individuals are required to install the World App, the first-ever wallet application that facilitates World ID creation. To obtain Orb verification for their World ID, individuals must visit an imaging device called the Orb. The majority of Orbs are managed by a network of independent local businesses known as Orb Operators. Utilizing multispectral sensors, the Orb verifies the distinctiveness and humanness of individuals, with all images deleted from the device by default (unless explicit consent for Data Custody is given).
All holders of Orb-verified World IDs are eligible for recurring grants of WLD tokens at no cost (please refer to the Worldcoin Tokenomics section in the project’s whitepaper for availability details in the United States). This effectively positions WLD as a highly distributed digital currency.
The WLD token has been designed as a utility token, encompassing governance properties that empower users by granting them influence over the future of the protocol. In contrast to traditional “one-token-one-vote” governance mechanisms, the introduction of World ID signifies the potential for “one-person-one-vote” mechanisms, offering new avenues for governance. The combination of these two mechanisms also opens up possibilities for innovative approaches to governing. Following the launch, the Worldcoin Foundation will actively seek proposals and collaborate with the community to establish the interaction between World ID and the WLD token in Worldcoin’s governance model (refer to the project’s whitepaper for a comprehensive overview of governance and decentralization).
While the community of users holds the authority to determine the token’s utility, it is worth considering additional use cases aside from governance. For instance, users might choose to employ the WLD token to facilitate specific actions within World App or other wallet applications, facilitate other types of transactions, or express endorsement for particular initiatives or causes.
WLD operates as an ERC-20 token on the Ethereum network, with individual user grants allocated on the Optimism Mainnet. Consequently, the majority of WLD transactions are expected to occur on the Optimism network.
Four major components of Worldcoin
- World Orb: The World Orb represents a unique device, resembling the size and appearance of a Magic 8 Ball but with a larger silver-colored design. It serves the purpose of scanning an individual’s iris, which, similar to fingerprints, possesses a one-of-a-kind pattern.
- World ID: World ID functions as a digital passport, enabling individuals to establish their uniqueness and authenticity while maintaining anonymity.
- World App: World App serves as a user-friendly digital wallet, facilitating access to the Worldcoin and Ethereum protocols for individuals across the globe. Experience the power of proving your personhood with World ID, the essential human passport for navigating the new digital realm.
- Worldcoin (WLD): Regarding the native cryptocurrency of Worldcoin, WLD tokens, approximately 2 million users who participated in the Worldcoin beta program were granted a generous allocation of 25 WLD tokens each. Presently, more than 110 million WLD tokens are actively in circulation, and the Worldcoin white paper predicts a total issuance of 10 billion WLD tokens over a span of 15 years. It is crucial to note that once this threshold is reached, the WLD supply will be capped.
Who are the founders of the Worldcoin?
Sam Altman, Alex Blania, and Max Novendstern (Max Novendstern left the project in July 2021) founded Worldcoin. Notably, Sam Altman, also the co-founder and current CEO of OpenAI and former president of Y Combinator, a startup incubator, is among the co-founders. The Worldcoin project’s initial research and development were conducted by Tools for Humanity (TFH) and other partners.
Worldcoin has successfully raised more than 250M USD through multiple funding rounds, attracting investments from notable entities like a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital, and Tiger Global, among others.
How to buy Worldcoin tokens?
The WLD token is accessible through various channels, providing individuals the flexibility to choose the most suitable purchasing option based on their requirements. Prices are subject to fluctuations in the market.
WLD can be purchased on leading centralized exchanges (CEXs) including Binance, KuCoin, OKX, Bybit, Huobi, and XT.COM. CEXs like XT.COM crypto exchange offer multiple options such as credit card or bank deposit, as well as the ability to purchase WLD using stablecoins like Tether (USDT).
Additionally, decentralized finance (DeFi) platforms like Uniswap and PancakeSwap allow for token swaps. It’s important to note that the levels of security, reliability, and liquidity may vary among these platforms. In an open letter, Sam Altman and co-founder Alex Blania expressed that the availability of WLD tokens would consider regions with more feasible legal compliance.
During the launch on July 24, 2023, WLD was not available in the United States. The company explicitly stated that the use, purchase, or access of WLD tokens is not intended for U.S. persons, including U.S. citizens, residents, individuals located within the U.S., and companies incorporated, located, or registered in the United States. Additionally, completing an Orb scan in the U.S. would make individuals ineligible for the token drop.
Is Worldcoin safe?
Worldcoin has generated a considerable amount of skepticism within the cryptocurrency market. With its unique emphasis on biometrics and its absence in the U.S., along with its ambiguous token distribution approach, Worldcoin has become a topic of controversy.
Critics express apprehension regarding the lack of transparency surrounding the distribution of WLD tokens. In a recent interview with Bankless, Blania declined to provide any clarity on the matter, citing “regulatory uncertainty” in the U.S. Over the past few months, numerous cryptocurrencies and exchanges have faced scrutiny from the U.S. Securities and Exchange Commission due to allegations of selling and distributing unregistered securities. The classification of digital assets by regulators remains uncertain, but crypto enthusiasts celebrated a significant legal triumph in July when a court ruled that Ripple’s XRP token is “not necessarily a security on its face.”
Besides concerns about token accessibility and distribution, skeptics argue that the collection of biometric data poses its own security risks.
According to a recent blog post by Ethereum co-founder, Vitalik Buterin, there are potential concerns with Worldcoin’s proof-of-personhood system. These concerns include issues related to accessibility, privacy, security, and centralization. MIT Technology Review also published a story highlighting ethical concerns regarding data collection during Worldcoin’s beta phase. The report revealed discrepancies between Worldcoin’s public messaging and users’ actual experiences, including deceptive marketing practices, excessive data collection, and a lack of informed consent.
Additionally, traders have expressed worries about potential WLD dilution and its impact on Worldcoin’s price, considering only a small percentage of the cryptocurrency’s total supply is currently in circulation. Despite the criticism, Worldcoin’s founder, Sam Altman, remains optimistic and encourages critics to continue voicing their opinions. Altman views ambitious projects like Worldcoin as a means to drive progress, acknowledging that success is not guaranteed, but innovation requires the exploration and experimentation of new ideas.
WLD token price analysis
Worldcoin (WLD) has experienced a period of stability following its initial turbulent launch on various mainstream cryptocurrency exchanges.
On July 29th, the price of WLD exhibited a modest increase of approximately 6%, reaching $2.35. However, it is important to note that the token's value has declined by 70% since its peak of $7.50 during its market debut.
Presently, the price seems to be confined within the $2-$2.50 trading range, indicating a potential conflict of bias within the market.
The price of WLD is projected to remain steady at around $2 until October. It is worth mentioning that WLD is affiliated with the Worldcoin Foundation, which was founded by Sam Altman of OpenAI on July 24. This token has a total supply of 143 million, with 43 million allocated for distribution to Worldcoin’s app users through an airdrop. Users who verify their identity using an eye-scanning physical orb will receive 25 WLD tokens each.
The remaining 100 million tokens have been lent to market makers located outside of the United States until October 2023. These market makers have the option to either return the WLD tokens or purchase them at a price of $2 plus $0.04 multiplied by the number of tokens being bought divided by 1 million.
Consequently, there seems to be a stabilization of the WLD price around the $2 mark. This strategy, as highlighted by Kaiko Research, aims to maintain the token’s appeal to potential users.
According to the latest report from the data analysis firm, adding “The 25 WLD tokens are currently worth a little more than $50 and will likely stay in that range for the next three months. So far, this seems to be enticing people to sign up and scan.”, convincing individuals to register their eyes for 25 units of a token that does not exist yet can be quite challenging. This challenge is intensified if the token’s price is as low as $0.10.
Worldcoin price technical analysis
The total number of Optimism wallets holding WLD tokens has jumped to nearly 305,000 since July 24, according to Dune Analytics.
Meanwhile, WLD transfer volume has dropped in the same timeframe. These metrics show that most traders have preferred to hold the token.
As a newly launched token, WLD lacks enough trading history to conduct a long-term price analysis. However, on a shorter-timeframe chart, the Worldcoin token appears to be fluctuating inside an ascending channel pattern.
As of June 29th, the price of WLD traded in the vicinity of the lower trendline. There is an anticipation of a rebound towards the range of $2.35 to $2.40, which is marked as “resistance 1” in the chart above and aligns with the upper trendline.
If the price manages to close above the upper trendline, there could be an increased likelihood of WLD rallying further towards the range of $2.50 to $2.56 (resistance 2) in Q3. This represents an approximate 12% increase from the current price levels.
Conversely, if the lower trendline is broken, the WLD price might move into the range of $2.15 to $2.20 (support 1). A close below this range may result in the price testing the range of $2.00 to $2.10 as the next downside target, which corresponds to a decrease of approximately 10% from the current price levels.
What Worldcoin (WLD) trading pairs are available on XT.COM?
Spot market: WLD/USDT
Futures markets: Perpetual Worldcoin (WLD) futures