WorldCoin is a new blockchain project spearheaded by Sam Altman that has been facing major challenges from regulators who are concerned about data privacy. As a result, WLD token prices have dropped by over 72% since their highest levels this year and the amount of tokens traded at exchanges has reduced.
Recently launched with much anticipation, WorldCoin is the brainchild of the creators of ChatGPT. A key issue the network is facing is the collection of user data using the iris scanner and Orb device. Several countries, particularly in Europe, have warned the project against collecting data from its users.
Last week, the data collection process was halted in Kenya as thousands of people participated. The tokens were valued at around $50, which is a very high amount in a country where youth unemployment is very high. Afterwards, Kenyan officials raided the WorldCoin warehouse.
The UK has also issued a statement that WorldCoin must abide by the Data Protection Impact Assessment (DPIA) before collecting user data.
The WLD token has been trading sideways for the last few days. On a 30 minute chart, the token formed a double bottom pattern, which is a bullish signal. The token is still below the level of resistance at $2.20, which it reached on August 1. It is likely that it will remain in a phase of consolidation for the next few days, and if there is a bullish breakout, the token will reach about $2.20. If the price drops below $2, this will invalidate the bullish outlook.