Less than 2 months after launch, 98.5% of Worldcoin token investors already at a loss

Worldcoin, the Sam Altman-founded privacy-focused project, and its native token, $WLD, have taken the crypto ecosystem by storm in the past two months. Barely a week can pass without Worldcoin making headlines in one country or the other.

But now, a revelation has come to light that despite the hype and buzz Worldcoin has generated globally, it has not been reflected in the Return-on-Investment (ROI) percentage of its investors. Recent data shows that over 98.52% of WLD investors are currently counting their losses. Also, figures suggest that in just a month, the $WLD token has lost about 52% of its market value.

Recall that Worldcoin has been at the centre of regulatory issues in different countries globally. The project is currently under investigation in Kenya, Argentina, Germany, United Kingdom and elsewhere. And this problem all boils down to concerns around privacy and critical biometric data safety.

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Worldcoin describes itself as a digital passport that can help holders prove they are human. According to its whitepaper, this refers to establishing that an individual is both human and unique, and this will be achieved through the privacy-centric digital identity called World ID. 

This World ID and the native token $WLD can be acquired through simple verification of being a genuine human being. 

More on the Worldcoin token decline data 

According to data from CoinMarketCap, $WLD traded at $2.2 around this time last month. However, it is exchanging hands at $1.06 at the moment. This shows that $WLD has lost over 50% of its value, just in a month.

Additionally, data from data analytic firm IntoTheBlock paints a grimmer image of the Worldcoin token investors. The data says 98.52% of current $WLD investors are currently in losses. This indicates that just less than 2% of the token holders have made gains, despite the hype since July.

Note that there has been a decline in interest in the token since around the first week of August after Kenya halted the project’s activities in the East African nation by citing controversial biometric scans of its citizens.

But that’s not an excuse. Technext reported last week that Worldcoin witnessed a significant rise in its popularity and demand in Argentina. The identity project confirmed that it crossed a major milestone with its ID verification in the South American country. According to a blog post, the project signed up over 9,500 users in Argentina in a single day in August, setting a record for single-day sign-ups. 

Related post: Worldcoin gets new signup every 9 secs in Argentina

It is however disappointing that the reported craze around Worldcoin in Argentina could not impact its native token positively.

The unsustainability of the Worldcoin Tokenomics 

With the way the $WLD token is structured, it is not likely that the token would get genuine demand from investors which would propel a price surge. 

Most of the token holders got them as rewards, after having their eyeballs scanned by Worldcoin orbs at designated locations. And what happens after is that they convert the $WLD token to fiat immediately or soon after the scanning, and move on with their lives.

This is exemplified by what played out in Kenya. Kenyans were lining up in droves to get their eyeballs scanned by Worldcoin orbs located at the supermarket chain Quickmart’s 13 outlets in Nairobi. 

Local media reports that more than 350,000 Kenyans signed up in exchange for the free WLD tokens worth around 7,000 Kenyan shillings ($49.09) at that time. 

Also, the reports say the Kenyan residents immediately converted the tokens to USDT before eventually converting the stablecoins to Kenyan shillings. 

This scenario is an indication that there is little or no genuine interest in the $WLD token. It is apparent that people who get their eyeballs scanned only did so after learning of the opportunity to get easy money via the WLD tokens. 

When Bitcoin.com reported the craze in August, a certain Brian Mwangi, one of the WLD token recipients said:

“I was here by 5 am because there has been a lot of talk on TikTok and Instagram about the free money Worldcoin is giving all those who download their app and subscribe, we are for the iris scanner so that we can be sorted.”

If this mechanism continues to play out, there will be more sellers of the token, than buyers, which will continue to send the $WLD token on a downward spiral.