- Worldcoin, the controversial cryptocurrency co-founded by OpenAI CEO Sam Altman, will launch today
- The token aims to tackle online identity authentication and income inequality using AI advancements, but its data collection methods have faced significant scrutiny.
- Unique IDs are already for sale on the black market
Worldcoin, the controversial cryptocurrency co-founded by OpenAI CEO Sam Altman, is set to launch today, stirring both excitement and controversy in the crypto space. The token aims to address online identity authentication and income inequality using advancements in artificial intelligence (AI), but it has faced significant pressure over how it goes about collecting data. The project was first mooted in 2021 where it was likened, in looks as well as behavior, to the Death Star from Star Wars.
WorldCoin Hasn’t Made Many Friends
The Worldcoin project has been a subject of heated debate in the crypto space due to its ambitious and unconventional approach to tackling the challenges of online identity verification and income disparity. The token economics will be unveiled on Monday, but Tools for Humanity has already said that it will offer people across the globe free Worldcoin tokens, known as “WLD,” in exchange for scanning their irises using “The Orb” device (the Death Star).
This process ensures that each individual receives only one unique Worldcoin ID, potentially addressing the issue of distinguishing real individuals from bots, which has become increasingly crucial in the era of large language models like ChatGPT. Moreover, the unique ID may prove valuable in reducing or preventing fraud when governments consider distributing “universal basic income” to their citizens, something which Altman advocates for.
According to Worldcoin executives, their strategy addresses two problems posed by the increasing complexity of artificial intelligence: distinguishing between humans and bots, and providing a type of universal basic income that could potentially counteract job losses caused by AI.
IDs Being Sold on the Black Market
WorldCoin has received criticism since the concept of the project was first outlined in 2021. Critics of the Orb idea are resistant to the collection of personally identifiable data, which they say raises concerns about privacy and security, and last year there were reports of dissatisfaction among individuals who had their iris scanned by the Orb, as they did not receive the expected coins immediately.
While some received “grants,” the distribution of tokens was delayed until today. There were also reports from credible sources of users selling their unique IDs from the Orb on the black market, highlighting potential misuse and risks associated with the technology:
No it’s not. Can already buy them on Telegram for cheap. pic.twitter.com/L1pv0PhZSx
— ZachXBT (@zachxbt) July 23, 2023
There is also regulatory uncertainty surrounding the distribution of Worldcoin tokens in the United States, however, as the Securities and Exchange Commission (SEC) has famously been cracking down on the crypto industry. Consequently, Worldcoin will not be distributed to
U.S. residents, raising questions about whether co-founders and investors based in the country will be eligible to receive the coins outside the States.
No doubt there will be huge interest in the tokenomics of WorldCoin and the project’s full launch, not least because of Altman’s involvement.
