Several regularity concerns have been raised since the launch of Worldcoin’s (WLD) mainnet, resulting in a decline of more than 50% in the value of its token.
Trading at $1.27 at press time, the price per WLD token has dropped by 53% since its $2.71 price peaked on the project’s launch date, CoinMarketCap data shows.
Since the launch of Sam Altman’s Worldcoin, several regulatory bodies across the world have raised concerns over its privacy attribute.
In one such instance, United Kingdom’s Information Commissioner’s Office released a statement on July 31, that Worldcoin was rife with data privacy issues that local regulators intended to look into.
Another announcement was made by the Kenyan government on 02 August, suspecting Worldcoin’s operations, citing a risk evaluation by their government agencies.
The value of the WLD token has been under pressure due to these regulatory inspections. Social activity surrounding the token has decreased over the past month, indicating a sharp decline in interest.
According to Santiment, an on-chain data provider, WLD’s social volume and dominance witnessed a steep decline of 95% and 74% respectively, as evaluated in the past 30 days. This has consequently decreased the hype over the project.
Moreover, the growing regulatory issues have resulted in a fall in WLD’s demand. As per the data, the daily account of addresses generated to trade WLD has been trending down since July 26 and has fallen by 98%.
Owing to this trend, it was seen that where 1673 addresses completed WLD transactions on 25 July, the number dropped to less than 150 addresses on 25 August.
Is There a Silver Lining?
A subsequent analysis of WLD's profitability showed that its holders have continued to book profits despite the recent price decline.
Santiment’s report at press time cited that the ratio of WLD’s on-chain transaction volume profit to loss was 1.998.
A ratio of 1.998 suggested that there was a $1 loss for every $1.998 in profits from WLD transactions. This ratio was positive, indicating that WLD transactions generated more profits than losses. In other words, the daily on-chain transactions generated nearly twice as much profit as losses.
While daily traders have discovered a means to avoid losses on their daily trades, the majority of WLD holders continue to lose money. 98% of WLD token owners, according to IntoTheBlock, were "out of money" as of the time of writing.