WorldCoin Price Plunges 72%, WLD Faces Regulatory Headwinds
• WorldCoin is facing major headwinds as regulators remain concerned about data privacy, causing the WLD token price to plunge more than 72%.
• Kenya has suspended the data collection and raided a warehouse belonging to WorldCoin.
• The UK has warned that the company must comply with the Data Protection Impact Assessment before collecting user data.
Overview of WorldCoin
WorldCoin is a new blockchain project started by Sam Altman, with its key challenge concerning data collection part of its operations. The developers are collecting user data using an Orb device and have promised users tokens worth $50 if they participated in the process.
Headwinds Facing WorldCoin
Regulators in countries like Europe and Kenya have raised concerns about data privacy, leading to suspension of data collection in Kenya and warnings from UK authorities against collecting user data without complying with Data Protection Impact Assessment (DPIA). Moreover, there has been a raid on a warehouse belonging to WorldCoin in Kenya.
Impact on Price of WLD Token
The price of WLD token has dropped significantly from its highest point this year, while total volume traded in exchanges has also declined. On the 30-minute chart, there appears to be a double-bottom pattern which could potentially suggest a bullish sign. However, it remains below an important resistance level at $2.20 which further suggests that it may remain in consolidation phase for some time.
Overall, due to continued headwinds regarding privacy concerns and other regulatory issues facing WorldCoin, it is likely that this will continue to impact negatively on its token price for some time until these issues are resolved or addressed accordingly by the company’s management team and authorities involved in regulating such activities.
It is important for companies engaging in blockchain technology and digital currencies such as WorldCoin to ensure compliance with relevant laws and regulations so as not to face punitive measures or hinder their progress through unnecessary delays or disruptions related to non-compliance issues.