What matters more in the project — the WLD token or World ID?

The core product is World ID (proof that a human is unique), while WLD is a separate crypto-asset used for incentives and, where available, can be used within the ecosystem.

Why does the project face reputational risk and mistrust?

Because it involves biometric data (high sensitivity and regulatory scrutiny) and tokenomics, including unlocks and supply growth, which markets may perceive as drivers of speculation and price pressure.

Have there been official shutdowns or restrictions by authorities?

Yes. In several jurisdictions, suspensions and regulatory orders have been recorded regarding privacy and the legality of data processing.

Is fraud involving “verified” accounts possible?

Yes. There is a risk of grey-market activity (e.g., selling/transferring accounts or attempts to bypass procedures), so services typically need additional anti-fraud controls alongside World ID.

What is Worldcoin (WLD)

Worldcoin (WLD) is an ecosystem that aims to provide an anonymous proof of a “unique real person” on the internet via World ID and the World App.

Launch 24.07.2023 Ethereum (ERC-20)

Who created it

Tools for Humanity (TFH), Sam Altman, Alex Blania, Max Novendstern

Why it was created

To build a global system for proving a “unique human” (World ID) and to drive network growth through WLD distribution (grants/incentives) and community participation in protocol governance.

How it’s used

Receiving periodic WLD grants/airdrops for verified users (where available)
Participating in governance (votes/proposals on the protocol and its parameters)
Using the World App ecosystem (potential payments/internal mechanics as decided by the community)
Transferring/holding WLD and interacting with DeFi infrastructure (via Ethereum/Optimism)

Risks

Regulatory bans/suspensions due to biometrics and GDPR.
Risk of forced deletion of already collected data or a finding that processing violates GDPR.
Risk of challenges to “informed consent” and its revocability, including age-verification issues (which directly damages trust and can trigger further proceedings).
Risk of trading/reselling World ID and “grey-market” schemes involving verified accounts, meaning apps relying on World ID may face fraudsters posing as “verified people”.
Risk of price manipulation/speculation driven by predictable token unlocks for the team/investors and increasing circulating supply (fuel for mistrust in distribution “fairness”).
Risk of centralisation and “manual” rule-setting within the ecosystem (key components controlled by Tools for Humanity and related entities), which the market may view as a conflict of interest or a source of manipulation.
Risk of reputational incidents and country-level shutdowns (e.g., suspension of activities in Kenya during investigations), which can abruptly restrict access to verification and onboarding.
Risk of bans/closures by privacy regulators (e.g., orders to cease operations in Hong Kong over data-collection concerns).

FAQ

What matters more in the project — the WLD token or World ID?: The core product is World ID (proof that a human is unique), while WLD is a separate crypto-asset used for incentives and, where available, can be used within the ecosystem.
Why does the project face reputational risk and mistrust?: Because it involves biometric data (high sensitivity and regulatory scrutiny) and tokenomics, including unlocks and supply growth, which markets may perceive as drivers of speculation and price pressure.
Have there been official shutdowns or restrictions by authorities?: Yes. In several jurisdictions, suspensions and regulatory orders have been recorded regarding privacy and the legality of data processing.
Is fraud involving “verified” accounts possible?: Yes. There is a risk of grey-market activity (e.g., selling/transferring accounts or attempts to bypass procedures), so services typically need additional anti-fraud controls alongside World ID.