Worldcoin price has skyrocketed this week, outperforming other cryptocurrencies in the market following its launch on Monday. The cryptocurrency has jumped by 1,368% since its launch on Monday. At the time of writing, it was trading slightly lower at $2.230.
What is Worldcoin?
The cryptocurrency market has been in an uproar for the past few days, with the newly launched cryptocurrency, Worldcoin making the headlines worldwide. Worldcoin is a brand-new crypto and digital ID project launched on Monday after years of development. The project is spearheaded by its founders Sam Altman, co-founder, and CEO of OpenAI, the company behind ChatGPT, and Alex Blania.
The Worldcoin project is focused on building the world’s largest identity and financial network as a public utility, giving ownership to all its users. The project consists of a privacy-preserving digital identity called World ID, which enables users to verify their humanity online while maintaining their privacy through zero-knowledge proofs.
At the heart of the project is the physical imaging device called the “Orb” which gives users a unique digital identity to verify they are real humans and not a bot. The project has promised to verify users’ identities by scanning their eyes and potentially solving one of the more pressing problems posed by recent advances in artificial intelligence.
All Orbs verified World IDs holders are entitled to claim regular grants of free Worldcoin tokens (WLD), giving it the potential to be the most widely distributed currency. The WLD token is designed as a utility token with governance properties and has been issued to eligible people taking part in the beta and is now tradable. In its whitepaper, Worldcoin said that the initial total supply of Worldcoin is 10 billion WLD and will remain unchanged for the next 15 years since its launch on Monday.
What’s Next for WLD?
Worldcoin price has over $201 million in trading volume occurring in the past 24 hours, a 48% decline within the period. The cryptocurrency boasts a market cap of $246 million, ranking it the 118th largest cryptocurrency.
After collecting more than 2 million users during a beta period, Worldcoin said on Monday that it is going to speed its eyeball-scanning operations to 35 cities across 20 countries. Several cryptocurrency exchange platforms have listed the WLD token or stated their intention to do so, including Binance, the largest crypto exchange in the world by trading volume.
Worldcoin has raised over $250 million over the past few years from investors such as Khosla Ventures, a16z, Bain Crypto, Blockchain Capital, and Tiger Global, among others.
Possible Headwinds
The company’s backing by some crypto’s outcast is not helping its case, particularly in light of what critics deem to be questionable tokenomics. On Tuesday, Britain’s data regulator said that it will have to examine the Worldcoin project.
In October 2021, the Worldcoin project received an investment from Sam Bankman-Fried, the founder and CEO of FTX which collapsed and went bankrupt with the CEO facing fraud allegations. The co-founder of bankrupt Singapore hedge fund, Three Arrows Capital, Kyle Davies, also hinted that his firm invested in the project.
Despite the asset’s current popularity, rising regulatory concerns remain a hindrance to the token’s introduction to major markets. With the company co-founded by the OpenAI CEO facing regulatory pushback in the US, the Worldcoin cryptocurrency token remains unavailable in the US. The Wall Street regulators’ crackdown on digital assets is based on fears of cryptocurrencies being used for fraud and speculation.
Worldcoin Price Technical Analysis
Despite Worldcoin’s remarkable price surge, most traders are expressing their concerns about the WLD token’s circulating supply compared to its supply cap. The 4-hour chart shows that the Worldcoin price has been range-bound for the past few hours, cooling its recent rally. The WLD price has failed to jump back on its rally above the key resistance level of $2.50.
Therefore, the Worldcoin price is likely to struggle to find direction in the ensuing sessions amid uncertainty by traders. A move above the major hurdle at $2.50 could lead to further gains, pushing the price higher to the next resistance level at $3.00. However, a move below the crucial support level at $2.00 could pave the way for more losses, invalidating the bullish thesis.
