The hyped cryptocurrency Worldcoin (WLD) project has become a target of an investigation by a UK regulator not too long after its official launch. As per the latest Reuters report, the purpose of conducting the investigation is to identify risks such as privacy and overall safety associated with the project. The development follows the recent listing of the WLD token on major cryptocurrency exchanges, including Binance. With that being said, several analysts have suggested hyped investors stay away from the new token for the time being.
The UK Information Commissioner’s Office expressed concern over Worldcoin’s claims that it would provide users with digital identification and free Worldcoin (WLD) tokens in exchange for their iris scans. The regulator has argued that a solid lawful basis to process such personal data would be inquired about in its investigation.
At the same time, the regulator would also ensure whether or not Worldcoin is relying on the consent of its users. As of now, more than 20 million users have already signed up for the project, and the company is pushing its iris scanning capabilities in an estimated 20 countries.
Worldcoin (WLD) Plunges Following Possible Investigation
Worldcoin (WLD) has described the entirety of the project as a new identity and a financial framework. At the same time, anyone who signs up for the project would be assigned a unique ID that would distinguish them from AI. Additional details of the investigation into the new project are expected to be shared within the upcoming few days.
With the news of UK regulators planning to launch an investigation, the crypto market was quick to react. Not too long after the launch, Worldcoin (WLD) skyrocketed by a staggering 75%, but the situation has changed drastically now. At the time of writing, Worldcoin (WLD) has plummeted by a whopping 22.72% within the previous 24 hours. The decline has pushed the trading price of the token to almost $2.13, and the market cap currently stands at $228 million.
Despite a number of analysts raising their concerns about the project, the co-founder of Worldcoin (WLD), Sam Altman, has suggested that concerns surrounding privacy concerns would be eliminated following the transition to open-source code. At the same time, it was also mentioned that the company would not expand to the US due to ongoing regulatory issues and a lack of clarity.
