- Worldcoin’s value has plummeted by over 50% due to regulatory concerns.
- Decreased social activity has led to a drop in demand.
- Despite maintaining profitability, many individuals continue to hold the coin at a loss.
Since the launch of Worldcoin’s main network a month ago, regulatory concerns have caused the token’s value to drop by more than 50%. The decrease in social activity surrounding the token indicates a significant decrease in interest.
Worldcoin’s Future
Since the launch of Sam Altman’s Worldcoin, data privacy concerns have been raised by regulators in various countries. These regulatory reviews have exerted downward pressure on the value of the WLD token. The daily demand for WLD has also decreased with the increase in regulatory issues. Despite the price drop over the past month, another assessment of WLD’s profitability reveals that its owners continue to make a profit.
Will WLD Rise?
According to data from Santiment, the ratio of WLD’s on-chain transaction volume profit to loss was 1,998. This positive ratio indicates that more profit was made in WLD transactions than loss. In other words, the profit derived from daily on-chain transactions was almost double the loss incurred. However, while daily traders find a way to overcome losses in their daily transactions, most WLD owners continue to lose money.
Regulatory Concerns and Their Impact
Regulatory concerns have been a major factor in Worldcoin’s decline. For instance, a week after the project’s main network went live, the French data protection agency expressed concerns about the legality of the data collection. Similar concerns were voiced by the UK Information Commissioner’s Office. The Kenyan government also suspended Worldcoin’s operations pending a risk assessment by relevant government agencies.
Conclusion
While Worldcoin has faced significant challenges due to regulatory concerns and decreased social activity, it has managed to maintain profitability. However, the majority of WLD owners continue to hold the coin at a loss. As the cryptocurrency landscape continues to evolve, it remains to be seen how Worldcoin will navigate these challenges.
