Worldcoin price could bleed with German watchdog’s investigation, amidst allegations of fake KYC in Africa
- Bavarian state regulator is the lead authority investigating the Worldcoin project under the EU’s data protection rules according to Reuters.
- Chinese reporter investigates likely fake Worldcoin KYCs in Africa.
- WLD price trades at $2.336, 128% below it's all-time high of $5.278 on Binance.
Worldcoin (WLD), the project launched by OpenAI’s Sam Altman, is under investigation by German watchdog, Bavarian state regulator. According to a Reuters report, the authority has been investigating Worldcoin for a year.
A Chinese reporter shared details of fake Worldcoin KYC in Africa and shared the story of a source involved in the KYC scam. WLD price is likely to suffer a correction in response to the rising number of allegations and investigations by authorities worldwide.
Worldcoin under investigation by German watchdog
Reuters reported that a German data watchdog has been investigating OpenAI CEO Sam Altman's Worldcoin project since late 2022. The Bavarian State Office for Data Protection Supervision started investigating Worldcoin on the grounds that the firm is collecting "sensitive data at a very large scale" using new technology.
The Worldcoin project requires users to get their iris scanned in exchange for a digital ID and offer free tokens in a few countries, in exchange for “identity creation.” The Cayman Islands-based entity told Reuters that it complies with the European Union's rules and will continue to cooperate with governing bodies' requests for information about its privacy and data protection practices.
The project boasts of 2.1 million sign ups over the past two years.
Reporter sheds light on reports of fake Worldcoin KYC in Africa
While Worldcoin battles intense scrutiny from regulators, Colin Wu, a Chinese reporter shared details of fake Worldcoin KYC in Africa. Wu connected with a source that shared details of the KYC scam and insider details of the fraud.
Wu’s source explained that Worldcoin hired third-party operators in Africa. These operators were responsible for conducting KYC on behalf of others and hired laborers were paid $1 per task. With increasing competition among multiple third-party operators, the wages of laborers increased to $3.
The ordinary Kenyan public’s awareness of Web3 is limited, therefore hired laborers scanned their irises to get paid in exchange, feeding the KYC fraud of the Worldcoin project.
WLD price continues to bleed
As the critique of the Worldcoin project continues to mount, the WLD price is on a decline. On Binance, WLD price hit an all-time high of $5.278 on July 24. Since then, WLD price lost 128% of its value, dropping to $2.336 at the time of writing.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
