• Worldcoin [WLD] has faced a sudden decline of over 50% in value since its mainnet launch due to mounting data privacy concerns.
• Regulatory bodies from France, the United Kingdom and Kenya have voiced their concerns about the project, putting downward pressure on WLD’s price.
• The social activity around WLD has also dropped significantly, indicating a severe drop in the hype surrounding the project.
Worldcoin tanks by over 50% amid Data Privacy Concerns
As regulators worldwide voice their concerns around Worldcoin’s data privacy policies, holders of the cryptocurrency have had to deal with a sharp decline in its value. Since Worldcoin’s [WLD] mainnet launch a month ago, its token price has dropped by 53%, trading at $1.27 at press time.
Regulatory Concerns Plague Worldcoin
The French data protection agency Commission Nationale Informatique & Libertés (CNIL) raised questions regarding the legality of data collection and storage practices while the UK’s Information Commissioner’s Office announced an investigation into Worldcoin soon after its launch. On 2 August, Kenya also suspended operations of Worldcoin pending risk assessment by relevant government agencies.
Drop in Social Activity Around WLD
The mounting regulatory issues have resulted in a significant decrease in demand for WLD tokens as well as an overall drop in the hype around them. According to on-chain data provider Santiment, WLD’s social volume and social dominance have fallen by 95% and 74% respectively in the past 30 days. Moreover, daily addresses created to trade WLD have decreased by 98%, signalling a decrease in interest for this cryptocurrency among users.
What Does This Mean For Investors?
Investors should be wary of investing in any cryptocurrency that is subject to regulatory scrutiny as it could result in further losses if such projects are deemed illegal or intractable due to compliance issues. It is important for investors to be aware of potential risks associated with any investment before taking any action.
Worldcoin’s recent plunge serves as an example of how quickly sentiment can change towards cryptocurrencies when subjected to regulatory scrutiny or other external factors outside investor control – something all investors should consider when making decisions about which currencies to invest in and when exiting positions held within them