Worldcoin, a cryptocurrency project initiated by US-based OpenAI, has seen its value drop by 50% since its launch on July 24, while encountering suspension in Kenya due to privacy concerns.
Initially, the cryptocurrency gained rapid traction in Kenya within its first fortnight. Kenyans eagerly queued at makeshift centers in Nairobi to undergo eyeball scans using the Worldcoin Orb, an authentication process for their online identity, known as World ID.
During the cryptocurrency’s prime, new members were granted 25 tokens for free, known as grants, which could be redeemed on the World App. By August 1, one Worldcoin was valued at $2.28, equating to approximately Sh7,786 upon verification.
The cryptocurrency’s peak occurred on August 2 when it traded at $2.45, after which its value steadily declined.
Recent observations indicate that the cryptocurrency’s value has diminished to $1.24, approximately Ksh.180 based on current exchange rates. Consequently, 25 tokens are now valued at about Sh4,500.
Over 350,000 Kenyans underwent eyeball scans with the Worldcoin Orb before the Kenyan government suspended Worldcoin’s operations on August 2. This suspension aimed to allow relevant security, financial services, and data protection agencies to investigate the legitimacy and legality of the company.
Despite this suspension, project participants could still redeem their grants. As of August 7, Worldcoin reported high traffic on the World App, leading to temporary disruptions.
Amidst the Kenyan setback, Worldcoin has continued its expansion in countries such as Germany and France. The company’s website boasts over 2.2 million sign-ups and verifications across 34 nations.
However, Worldcoin has not been without controversy. The project has faced scrutiny in Europe for potentially violating stringent General Data Protection Regulations (GDPR) in European Union member states.
Authorities have expressed concern: the United Kingdom’s Information Commission Office plans to inquire into Worldcoin, while France’s privacy watchdog CNIL has deemed the legality of the project’s biometric data collection as questionable.
CNIL has conducted a preliminary evaluation and identified its German counterpart in Bavaria as the lead agency in Europe for investigating Worldcoin, with their inquiry receiving CNIL’s support.
