Worldcoin, a start-up founded by Sam Altman of OpenAI and Alex Blania in 2019, is set to launch its blockchain protocol in the next six weeks. It comes after securing nearly $100 million in funding for its cryptocurrency. The new digital currency is designed to be utilized as a revolutionary global identification system that uses iris scans to authenticate a user’s identity.
Ambitious Plans for a Global Currency
According to the Financial Times, the Worldcoin team has developed a plan that aims to address a two-fold problem that has arisen as a result of the increasing sophistication of artificial intelligence: distinguishing between humans and bots while providing a form of universal basic income to offset job losses caused by AI.
Based on the company’s website, its approach uses an orb that employs iris biometrics to establish an individual’s unique identity and create a digital World ID that can be used anonymously in a wide variety of everyday applications without revealing the user’s identity. The goal is to create a system that enables access to free global currency and provides a form of universal basic income.
Funding from New and Existing Investors
Worldcoin has secured new funding from both new and existing investors, including Khosla Ventures, Andreessen Horowitz’s crypto fund, FTX founder Sam Bankman-Fried, and internet entrepreneur Reid Hoffman. A previous token sale valued the total supply of the company’s tokens at $3 billion, according to the tech-focused publication The Information.
Bear Market in Crypto Sector
The cryptocurrency sector has endured a difficult year, with many token prices plummeting and several crypto companies failing. The collapse of FTX, backed by venture capital fund Sequoia Capital, Chase Coleman’s Tiger Global Management, and Thoma Bravo, accelerated the decline in token prices and prompted many blue-chip funds to curtail their investments in the sector.
Amid these challenges, Worldcoin’s fundraising success is seen as a positive development for the sector.
Addressing Privacy Concerns
Despite its ambitions, Worldcoin has faced criticism over the potential privacy risks posed by its biometric scanning technology. The company has addressed these concerns on its website, stating that it will not store iris scans and that the orb will not harm users’ eyes.
Worldcoin’s Impact on the Crypto Sector
Worldcoin’s successful fundraising round is a positive development for the crypto sector, which has faced significant challenges in recent times. The collapse of FTX and the subsequent decline in token prices has led many investors to become wary of investing in the sector. The start-up’s unique approach to addressing the challenges posed by AI, combined with its innovative use of iris scanning technology, has clearly resonated with investors.
Final Thoughts
Worldcoin’s $100 million funding round is a significant milestone for the company, and it is clear that the team behind the project has ambitious plans for its global currency. While there are concerns over the potential privacy risks of biometric scanning technology, its approach to addressing the challenges posed by AI is both innovative and timely.
The success of Worldcoin’s fundraising round is certainly a positive development for the crypto sector, and it will be interesting to see how the project develops in the coming months and years.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.
