Sam Altman's Worldcoin Initiative Faces Global Backlash Over Privacy Concerns

Sam Altman, the CEO of OpenAI, is facing a global backlash over his Worldcoin initiative, which aims to scan the irises of every person on the planet

Sam Altman, the CEO of OpenAI, is facing a global backlash over his Worldcoin initiative, which aims to scan the irises of every person on the planet and compensate them with a unique cryptocurrency. The project has been met with resistance from numerous governments, leading to suspensions and investigations.

Why It Matters: Part of Altman’s expansive business empire, Worldcoin is designed to provide financial assistance to individuals whose livelihoods are disrupted by AI. The project verifies human identity using iris scans and distributes payments in its WLD cryptocurrency.

Despite its claims of privacy, Worldcoin has been accused of encouraging users to share their iris images, raising concerns about the creation of a global biometric database.

Authorities in over a dozen jurisdictions have taken action against Worldcoin, including raids, fines, and criminal investigations. The project’s future in the European Union is also uncertain. Altman, a prominent figure in the AI revolution, has defended Worldcoin, asserting that the project is working to address regulatory concerns.

"We've built a technology that by default is privacy-enhancing," Damien Kieran, the project's chief privacy officer, told Benzinga in an interview. "We don't collect data to harvest it. We don't sell data. In fact, we couldn't sell it, because we don't know who the data belongs to."

Worldcoin, which launched in 2023, has verified over six million people in nearly 40 countries, giving the project a theoretical value of $15 billion. Altman, who has a stake in the project, is working to expand its global presence, attracting users from both developed and developing markets.

WLD is actively traded, but in chat groups where holders congregate, the focus is more on using the token to bet on Altman's other ventures. For example, its price nearly quadrupled following the February release of OpenAI's Sora video tool.

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Worldcoin has been implementing new measures to address regulatory concerns, including a reservation function for unverified users and additional security features for iris codes. The project’s leadership, including Altman and co-founder Alex Blania, has been engaging with governments and regulators to address these issues.

Worldcoin’s Journey: Key Milestones and Challenges

Worldcoin’s journey has been marked by significant milestones and challenges. The project launched in July 2023, aiming to create a global identity and financial network by leveraging iris-scanning technology.

In August 2023, Worldcoin introduced a feature allowing unverified users to reserve their Worldcoin tokens, which they could claim upon completing the iris scan. This move was aimed at attracting new users to the platform.

Despite regulatory hurdles, Worldcoin has seen substantial growth. In June, the project experienced a significant surge in token value following a favorable decision from Kenyan authorities. This led to Worldcoin outperforming major cryptocurrencies like Bitcoin (CRYPTO: BTC/USD) and Ethereum (CRYPTO: ETH/USD).

In July 2024, Worldcoin’s value soared by 40% after Tools for Humanity announced an extension of token lockup periods for early contributors, further boosting investor confidence.

Price Action: WLD is currently trading at $1.52, up 0.65% in the last 24 hours. Over the past month, the token has dropped 40.95%, and it’s down overall by 8.89%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote