What Is Worldcoin? Should FOMO enter WLD right now?

Recently, Worldcoin has just called for $ 115 million in the context of a difficult market. So what’s so special about this project? Let’s find out together in this article.

1. What Is Worldcoin?

Worldcoin stands as a digitized form of cryptocurrency, functioning through a decentralized blockchain network. Its essence lies in enabling direct transactions between individuals, devoid of intermediaries such as banks or financial establishments. The primary purpose behind its creation revolves around streamlining global transactions and acting as a versatile medium of exchange, transcending geographical boundaries.

Detailed technical specifications of Worldcoin might differ, as numerous cryptocurrencies share akin names. Thus, a thorough comprehension of its attributes, technology, and applications demands referencing the whitepaper or official documentation corresponding to the particular Worldcoin project under scrutiny.

2. Worldcoin (WLD) before listing time

The Worldcoin retina-scanning identifier project appeared two years ago but only really caught the attention of the community after three successful fundraising rounds with a total amount of up to 240 million USD.

On July 24, the project led by Sam Alman – CEO of OpenAI is expected to be listed on many major exchanges such as Binance, Huobi, OKX, Bybit… The listing event is much-awaited because Worldcoin seems to reward investors who experience Orb products early. Through the Orb eyeball, Worldcoin users can verify their identity using the Proof of Personhood mechanism and save the data on the blockchain.

According to the Worldcoin team, the World ID of the project will act as a global digital passport, which can be stored in the user’s phone. With World ID, users can verify their identity without the need for identifying information such as phone numbers or email addresses.

With the above interesting information, the project is considered to have great potential, but there is still a lot of controversy surrounding Worldcoin. Most of the issues related to the security of users’ information revolve around the Orb eyeball.

Fortunately, the project has ignored the buzz around to continue pursuing the goal of solving income inequality and verifying online identities.

World ID
World ID

According to the information updated on CoinMarketCap before the listing time, Worldcoin is shown FDV up to more than 20 billion USD depending on each exchange. This shows a great level of interest in the project that is hugely funded and possesses potential technology like Worldcoin.

The level of interest is growing higher when it is reported that the project will reward users who experience Worldcoin. According to 0xScope, Worldcoin has begun to reward more than 90,000 eligible wallets, each of which will receive a minimum of 25 WLD.

This news brought joy to over 90,000 investors, but also brought sadness to those who minted NFT on the Zora network. This commemorative NFT has plummeted from the price of 0.025 ETH, after the news of the WLD airdrop was released. All users need to do to get paid 25 WLD is a retina scan on Worldcoin’s test app.

At 4 p.m. on July 24, as recorded on the Binance exchange, WLD quickly built a green column and peaked at $5.29/token, equivalent to more than $52 billion in FDV.

After reaching the unimaginable number mentioned above, WLD is currently trading at a price of about 3.1 USD/token. Each individual can receive 75 USD (with 1 WLD worth 3 USD) if successfully identified through Orb, which is not a small number for people in low-income countries.

Worldcoin Price After Binance Listing
Worldcoin Price After Binance Listing

3. Should FOMO enter WLD right now?

As mentioned above, WLD is currently trading at a price of about 3.1 USD/token – quite high compared to projects with similar mobilized capital. Investors will need to consider and learn 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 experience 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 reminiscent of the ICP project and advises people not to invest in Worldcoin.

But investors should remember, WLD in the market can increase very quickly as most of the total supply is used to reward users using Worldcoin. With the buzz of post-listing FDV, the project will surely attract a large number of experienced users, causing the amount of tokens to skyrocket in the near future.

At the same time, investors who wish to invest in WLD should note Worldcoin’s token allocation schedule. According to the project information provided, the project’s 7.5 billion tokens will be allocated over the next 10 or 15 years.

WLD allocation schedule
WLD allocation schedule | Source: Project Whitepaper

With the current high valuation and FDV, investing in WLD is considered by many to be relatively risky. If they still decide to put money into the project, investors should split their capital to avoid loss and monitor WLD’s on-chain information continuously to find a suitable entry point.

If you don’t want to put down money but still want to own WLD, investors can sign up for the project testing waiting list through the World App. Currently Worldcoin is aiming to place 1,500 Orb eyeballs worldwide this year.

4. What does Vitalik say about Worldcoin?

On his blog, Vitalik Buterin – Founder of Ethereum has a long article about the technology that Worldcoin is currently pursuing. The creator of Ethereum supports the development of Proof of Personhood technologies, but does not put too much faith in them.

Creating an efficient and reliable personal proof system for users unfamiliar with blockchain technology can seem quite difficult. I don’t envy the people who are trying to make this mission happen at all, and it could take years to find a formula that works.
Vitalik Buterin, Founder of Ethereum

In principle, the concept of Proof of Personhood is very valuable, but each different implementation has their own risks. At the same time, the world is not only worried about Worldcoin projects, they are also concerned with other biometric-related projects such as Proof of Humanity, Idena, BrightID…Because they can cause risks such as leakage of personal information, coercion of authoritarian governments,…

According to Vitalik, Proof of Personhood is valuable because they will very strongly solve problems such as forgery, 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 large 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 that application is hacked. This is solved by Proof of Personhood using ZK-SNARK technology.

That’s the prospect, but besides the risks of centralization such as hardware, governance…Vitalik also points out some other security risks of Proof of Personhood such as:

  • ID Sale: Users can give control of their World ID to a 3rd party in exchange for money. In addition to the issue of selling, they can rent someone else’s ID to use in a few cases.
  • 3D printed clone: The user can use AI to create a photo or 3D print of the clone enough to convince the Orb eyeball to accept. If a group of people do this, they can create countless identities.
  • Hack or lose your phone: If a user has their phone hacked by a hacker, they may lose their World ID. From there, it will affect the verification problem of the Proof of Personhood solution.
  • Government forces citizens to provide IDs: By this method, the autocratic government will own access to millions of World IDs.

According to Vitalik, there is no perfect method to verify a person’s identity. We should have at least three different approach models with distinct strengths and weaknesses, he suggested.

Comparison table of three representative methods given by Vitalik
Comparison table of three representative methods given by Vitalik

At the same time, the father of Ethereum welcomes individuals and development teams who are more interested in the issue of identifying individuals. He views the effort to develop these methods as a success that the whole community should continue to promote.

A world without any Proof of Personhood would be risky, where it would be dominated by centralized identity solutions, money, closed small groups, or some combination of all three. I look forward to seeing more progress towards all methods of Proof of Personhood and hope to see more different approaches to eventually coalesce into a unified whole.
Vitalik Buterin, Founder of Ethereum

We have answered the question of what Worldcoin is and provided what to keep in mind about the Worldcoin craze before, during and after it is listed on the exchange. Let’s learn and evaluate together to make the most informed investment decisions. Good luck!!!

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Emily TayLor

Hello, Emily TayLor Here. I’m a content Writer. I’m Writing About Life, Food, Finance and Related Contents on Website.

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