Birthday, Worldcoin 🎂
Worldcoin was launched one year ago. Then what happens? Who's stealing crypto's thunder? Another pension fund goes to Bitcoin ETFs. OpenAI could lose BIG this year. People are searching "on-chain."
Hello, y'all. We're only getting older.
Worldcoin turns one 1️⃣.
Worldcoin?
You know, the one where you scan your eyeball to get some kind of digital ID and crypto?
Led by the OpenAI boss, Sam Altman.
It promised to change the world.
2.4 million subscribers within just four months.
10 million users in less than a year.
160 countries, with 2 million daily active users and over 70 million transactions processed.
And the main use case? to buy goats.
Remember when someone in Kenya went from zero to goat farmer in record time?
A Worldcoin user in Kenya used their airdrop to purchase a goat, sparking a community-driven effort to expand their herd to 13 goats.
The goat was named "Sam" after the boss man himself.
What in the goats is Sam’s Worldcoin?
Founded: 2019
Founders: Sam Altman, Max Novendstern, Alex Blania
Developed by: Tools for Humanity.
Idea: A platform that gives people a digital ID and cryptocurrency (WLD).
Goal: Create a global financial network where everyone has a unique digital identity.
How it works:
Scans your iris with an Orb device to create a unique digital ID (World ID).
Stores your World ID on the blockchain.
Gives you WLD tokens.
Key features:
World ID: Proves you're a real person. No false identities, fraud or AI.
Orb: Scans your iris for World ID creation.
WLD: Cryptocurrency for Worldcoin users.
World App: Manage your World ID, wallet, and payments.
How Worldcoin Works?
Download World App: Users set up their Worldcoin account and verify their World ID using the orb device.
Verify World ID: The orb scans the user's iris, generating a unique IrisCode, which is then used to create a World ID.
Challenges:
Not available in all countries due to regulations.
Privacy concerns about iris data.
Worldcoin is facing a serious identity crisis of its own.
Worldcoin is not available in all countries due to regulations.
There's this whole thing about scanning people's eyes. I mean, that's a pretty big deal.
People are worried about their privacy. What happens to that data? Is it safe?
The other thing is how they're giving out this new crypto coin, WLD.
Critics argue that the token distribution model, which initially awarded 25 WLD tokens to users who had their irises scanned, may not be equitable.
The token's price rose above $3 at launch but fell to around $1 before rebounding.
The project has been on a collision course with regulators worldwide - questions about privacy and data protection.
Various regulatory bodies, including those in the UK, Spain, India, South Korea, Portugal, Germany, France, and Kenya, have launched investigations into Worldcoin's practices.
Kenya's Ministry of the Interior suspended the project from operating until further assessments could be made.
And very recently, Hong Kong ordered Worldcoin to cease local operations, called iris data collection ‘excessive.’
The Bigger Picture: Decentralised Identity
Despite the regulatory storm, the potential for decentralised identity (DID) solutions remains undeniable. The market is booming, and there's a clear demand for secure, user-controlled digital identities.
Global DID market is estimated to grow at a staggering CAGR of 90.3% between 2023 and 2030.
The scam allegations
Worldcoin, after suddenly delaying the release of 80% of its tokens for two whole years, people are starting to wonder if something fishy is going on.
DeFi Squared and crypto investigator ZachXBT alleged that the team might have insider info and used it to pump up the price before everyone else caught on.
Weirdly enough, the token's price actually jumped after the announcement.
“the biggest scam token of the bull run”- said ZachXBT.
Worldcoin has maintained its innocence, emphasising a blackout period that prevented team members from trading WLD during the critical period.
The project has vehemently denied these claims, asserting a strict "zero tolerance" policy for such activities.
Happy birthday again.
Block That Quote 🎙️
Steven Fulop, the mayor of Jersey City
“I’ve been a long time believer (through ups/downs) in crypto”
Fulop announced plans to allocate a portion of the city's pension fund to Bitcoin ETFs.
Follows in the footsteps of Wisconsin, which already has a 2% crypto allocation in its pension fund.
And yes, he’s a big fan:
Boomers hold the key to wealth?
Baby boomers, the wealthiest generation in America, hold around $68 trillion in assets and may influence the growth of cryptocurrency markets.
Read: Crypto's new $68 trillion power players: baby boomers
Is AI stealing crypto's thunder?
The short answer is: it's complicated.
While AI has undeniably captured the spotlight, siphoning significant investment away from other tech sectors, the relationship between AI and crypto isn't as black and white.
In the second quarter of 2024, venture funds invested significantly more in AI, with $41 billion, compared to only $3 billion in crypto.
Despite high expectations, crypto momentum has stagnated with Bitcoin's price fluctuating between $56,500 and $73,000 over four months.
Wall Street's focus: Interest has shifted towards AI, particularly influenced by companies like Nvidia, which is a leading supplier of semiconductors for AI.
Ram Ahluwalia of Lumida Wealth notes that the investment focus which could have gone to crypto is now being diverted to AI.
Both AI and crypto experience cyclical trends of growth and decline, as noted by Coinbase CEO Brian Armstrong.
ARK Invest CEO Cathie Wood says:
Crypto “is the biggest economic movement of my lifetime, and from a technology point of view, it is rivalling AI.”
In The Numbers 🔢
$5 billion
That’s how much OpenAI could lose this year.
Who said that? A report by The Information.
Why? AI is an expensive business.
OpenAI is reportedly shelling out $7 billion just to teach its AI to think and learn.
Now add in hefty staff salaries - another $1.5 billion.
This is much more than the competitors like Anthropic AI, which expects a 2024 burn rate of $2.7 billion.
This cash crunch means OpenAI might need to hit up investors again sooner rather than later.
Despite raising over $11 billion so far, the company's ambitious plans to create even smarter AI models, like the rumoured "Strawberry," are putting serious pressure on its finances.
On July 18, Open AI announced the launch of a new generative AI model, “GPT-4o Mini.”
Google searches for "onchain" have exploded
500% jump since the start of the year.
While this is undoubtedly exciting, search trends don't always equal real-world adoption.
But, people are curious about crypto.
Coinbase's "Onchain Summer" push is likely fueling some of this excitement. With their massive user base, they could be introducing millions to the concept.
This surge in interest aligns with significant trading volume ratios between DEX and CEX. Increased DEX to CEX trading volume ratios indicate a shift in trading preferences among users.
The Surfer 🏄
Elon Musk’s X has removed cryptocurrency emojis, including the Bitcoin emoji, sparking confusion in the crypto community. The removal coincided with the Bitcoin 2024 conference that began on July 25.
Sen. Elizabeth Warren warns that foreign-owned crypto mines in the US could be exploited by adversaries to compromise national security. She claims these facilities could be used for espionage, disrupting the power grid, or facilitating secret financial transactions.
bitFlyer has acquired 100% of FTX Japan, making it a wholly owned subsidiary. The company plans to launch crypto-based exchange-traded funds (ETFs) in Japan.
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