The Worldcoin (WLD) token, known for its identity verification protocol based on biometric data scanning, continues its price decline on the market.
Since its launch, it has aroused the interest of many, but Recent movements in its share price raise doubts about its future as a solid investment option.
Currently, the price of WLD is $1.36, which reflects a drop of 88% compared to its historical maximum reached in March 2024when it was quoted at 11.8 dollars, as can be seen in the graph of TradingView.
This sharp decline has brought the token to the brink of leaving the top 100 cryptocurrencies by market capitalization, ranking 97th at the time of this publication.
Worldcoin Token Expectations and Challenges
The token’s proximity to its all-time lows and its downward trend over the past year has generated mixed opinions among analysts.
Several Bearish factors affect its performance, with high inflation being one of the main ones.. This makes it not a very attractive option for investors to hold in the long term. Only 4.2% of the total 10 billion planned tokens have been issued, according to data from CoinMarketCap.
This is due to the Worldcoin issuance system, which rewards with WLD those who register on iris scanning devices called “Orbs.”
In addition, the Worldcoin Foundation, which is in charge of the project, sells WLD tokens, arguing that these sales are necessary to meet the growing demand for verified users and support the growth of the network.
However, some critics, such as analyst DefiSquared, see these sales as a strategy to benefit only the Foundation and early investors. According to him, the project’s “predatory tokenomics” will lead to a continued price decline if demand does not offset daily sales.
Additionally, Most cryptocurrencies tend to devalue against bitcoin (BTC) in the long term, and WLD seems to be following this path, which raises questions about its viability as an investment. Instead, the leading digital currency, due to its dominant position and unique features, is considered a safer investment in both the short and long term.
Regulatory factors and global concerns
Another major challenge for Worldcoin is the increasing regulatory scrutiny in several countries, especially in Latin America.
Last week, Mexico, through the National Transparency Institute (INAI), launched an investigation into Worldcoin’s handling of biometric data.
The company has been operating in Mexico since July of last year, establishing its presence in at least three cities and becoming one of the company’s main strongholds in the region, as reported by CriptoNoticias.
Yesterday, September 11, Singapore opened an investigation against seven individuals accused of offering services related to the purchase and sale of accounts and tokens of the project. Authorities in Singapore have warned consumers about the possibility of these accounts being misused for criminal activities, such as money laundering and terrorist financing.
The project has also been investigated and banned in countries such as Colombia, Ecuador, Spain, South Korea and Hong Kong, because of the way it handles biometric data collection, which many consider invasive and dangerous for privacy.
Negative publicity and criticism from the Regulators could severely damage Worldcoin’s reputationreducing the confidence of investors, who are looking for projects with solid foundations and a clear regulatory framework.
If regulatory pressure increases, investors are likely to withdraw their funds, leading to a sell-off and a price drop.
Worldcoin’s Link to AI
Despite the problems, Worldcoin has potential in certain aspects. The project, founded by Alex Blania and Sam Altman, CEO of OpenAI and developer of the artificial intelligence ChatGPT, seeks to create a way to identify bots and fake identities on the Internet in the era of artificial intelligence (AI).
According to the developers, this technology could become a pillar for human identity verification, a growing trend in a world increasingly dominated by AI.
For that reason, The WLD token is closely linked to the AI sectorwhich has been trending this year and is expected to be trending in 2025 as well.
Digital asset manager Grayscale highlights that the cryptocurrency and AI sectors have the potential to support each other, saying that cryptocurrency networks offer a way to decentralize and democratize access to AI.
Regarding the price of the token, the trader known on the social network X as BullishBanter suggests that WLD is at a crucial moment.
The chart below shows a general downward trend in the price of Worldcoin from late July to September.
The grey lines on the chart represent support and resistance levels, which are areas where the price has had difficulty breaking through, either to the upside (resistance) or to the downside (support).
Currently, the price is at a crucial support of $1.3. The analyst considers this situation to be a buying opportunityarguing that the price could rebound higher.
However, the price has tried several times to break above the $1.9 level without success, which suggests that this level is a strong resistance.
Should bitcoin experience a sustained rise, A climate of general optimism is created in the cryptocurrency market and therefore would benefit WLD. Investors feel more confident, which in turn drives demand for other cryptoassets.
An altcoin season, better known by its English term, altseason, can also take place, which is a period in which major tokens and cryptocurrencies perform better than bitcoin.
Since the birth of various altcoins (cryptoassets other than bitcoin), an altseason usually occurs in the second phase of a BTC bull cycle. This happens due to the expansion of risk appetite that leads investors to buy various assets on the market.
The opinion of specialists also counts
Industry leaders such as Vitalik Buterin, co-founder of Ethereum, have expressed favorable opinions towards Worldcoin.
In an essay, Buterin argument that digital verification of humans It is essential to combat spam and power concentration problems.
He also highlighted that the decentralization of the system, as promised by Worldcoin, could minimize dependence on centralized authorities.
For his part, the computer security specialist, Pablo Sabbatella, Indian that “Worldcoin developed a platform that allows humans to digitally verify their uniqueness.”
“I think it’s good to question all of this, audit it, and confirm that these machines actually work as stated. And if they do, everyone has the choice.”
Pablo Sabbatella, computer security specialist.
The outlook for Worldcoin is mixed. While some experts see the project’s potential, others are skeptical about its fundamentals and risks. The decision for investors will be difficult, especially in an environment of high uncertainty.
