Key Takeaways

• ChatGPT creator OpenAI launched its own cryptocurrency
• OpenAI’s CEO’s new company catches the attention of British authorities
• WLD token revives FTX fears

According to a Reuters report , the UK’s data regulator is opening an investigation into Worldcoin (WLD), a cryptocurrency co-founded by OpenAI CEO Sam Altman. The token sets itself apart from the rest by requiring iris scanning to validate users. 

In the meantime, crypto enthusiasts express genuine concern regarding WLD, claiming it might be a “pump and dump” scam.

UK Watch Dog

“We note the launch of WorldCoin in the UK and will be making further enquiries,” reported a spokesperson for the Information Commissioner’s Office

It’s not yet clear whether the investigation concerns the biometric data the token requires, or if it has to do with the potential illegitimate financial gains the project owners might garner.

The token launched on Monday. 100 million WLD were given to market participants, while the remaining tokens were given to investors who had been validated by having their irises scanned during the pre-launch of Worldcoin. These factors are what are causing the pump-and-dump doubt.

As of right now, only 1% of WLD tokens are in use. At launch, the token hit a peak price of $3.30. Then, it dropped to $2.01. However, at the time this article is being published, WLD is worth around $2.26, according to Coinmarketgap .

CCN reached out to Sam Altman for a statement on the matter but has yet to receive any response.

Potential Rug Pull

Senior analyst Dylan LeClair noted that “Worldcoin launched and pumped a microcap shitcoin with 1% of the total supply in circulation, ripping a page out of the SBF Solana eco playbook. Fully diluted market valuation of $22.8 billion.

This Ponzi is still on the ground floor. Ignore the VCs ready to dump on you (again). Actually, things are different this time.”

The fact that WLD is valued at $22 million with only 1% of the supply in use makes no sense. How is the token valued? Where are the traders causing the token to increase in price?

Founder and CEO of Vailshire Capital Management asked Twitter if they think WLD “would be the biggest crypto rug-pull yet?” and people’s votes reflect the confidence the crypto market has in WLD.

Perhaps it’s the technology WLD is introducing. The idea behind the token is to distinguish human users from AI, an issue ironically exacerbated by Sam Altman’s OpenAi, and its main product ChatGPT.

One thing’s for certain, if WLD manages to get on the UK government’s bad side, causing an official lawsuit filed by the regulating body, the token will likely see a sharp drop in value as investors now are wary of any major losses in the crypto market.