In a recent announcement, the company behind the Sam Altman-fronted Worldcoin project revealed that they have raised a staggering $115 million in venture capital. On the surface, this seems like a successful example of the Silicon Valley fundraising model; however, a closer look at the project’s premise leads to skepticism and questions about its future.
Worldcoin’s main selling point is a device known as The Orb, which scans users’ retinas for later online identity confirmation. Worldcoin tokens are then intended to be distributed as a form of “universal basic income” (UBI) to incentivize early adopters to participate in retina scanning. However, it remains unclear how these tokens will hold value for recipients in the long term when there is no apparent tokenomic model.
This precarious basis brings into question whether the UBI aspect of Worldcoin is merely a distraction from its true goal: solving digital identity issues. But even in this regard, the project’s approach presents numerous privacy risks and ethical concerns, making it far from an ideal solution.
The promises of both a charitable initiative and the potential for immense profits offered by Worldcoin depict a contradictory vision of wealth accumulation and global betterment through mass data harvesting. Already, there have been reports of deceptive marketing practices, questionable data collection methods, and possible violations of the European Union’s General Data Protection Regulations (GDPR) during the project’s early stages.
Adding to the concerns, a black market for biometric iris data has emerged in China among users hoping to join Worldcoin’s wallet app. This evidences that Worldcoin’s model is already encouraging privacy violations and potential exploitation, contradicting its aim of solving digital identity challenges.
Apart from the evident moral issues, non-compliance with GDPR could result in severe fines. Worldcoin’s reliance on numerous Orb Handlers for customer onboarding seems only to invite further manipulation and ethical breaches.
Blockchain Capital’s leading role in the $115 million fundraising round, and their support for Worldcoin despite its flaws, highlights a concerning approach to investing in digital identity solutions. This is particularly disheartening considering existing, decentralized crypto identity projects that focus on user control and privacy are overshadowed by the flashy, yet questionable, Worldcoin.
In essence, the Worldcoin project, with its mix of biometric technology, UBI, and crypto, raises numerous red flags regarding privacy, ethics, and long-term value. While an uncomplicated pitch might attract Silicon Valley investments, it is crucial to examine the potential consequences and alternative, more responsible digital identity solutions available within the crypto ecosystem.
Source: Coindesk
