Worldcoin, the cryptocurrency created by Sam Altman, founder of OpenAI and ChatGPT, is facing a serious trust issue. The project, which uses orbs to scan people’s irises as “proof of identity”, offers 25 Worldcoins, a currently worthless cryptocurrency, to those who provide their biometrics.
However, Worldcoin is currently unable to distribute its cryptocurrency in the United States and many other countries.
The reasons cited range from possible classification as a security by the US Securities and Exchange Commission (SEC) to concerns about the tokens falling into the hands of state sponsors of terrorism such as North Korea.
This limitation means that while the company’s main goal is to obtain biometric data from people all over the world, it cannot offer many individuals any kind of reward.
In short, WorldCoin basically wants to create a verified identity network. That is, if you have WorldCoin, your identity will be verified. They literally scan your eyes (via an orb device) and give you cryptocurrency “for free”.
But would you dare to give your ID in exchange for 10 dollars?
WorldCoin claims that once the systems are perfected, they will delete your data and will not be stored on the blockchain. However, we’ve all seen this number before, say users who are reporting on the project.
“This is a slippery slope because if your credit card leaks, you can replace it. If your face leaks, are you going to have plastic surgery?
Worldcoin says it’s open source, but it’s lying
Despite claiming to be completely open source, the protocol fails to deliver on that promise, according to the Protos website. The fact that some infrastructure and specification repositories are not publicly verifiable effectively makes it closed.
The Worldcoin Foundation stated that it plans to “make more source code available over time”.
In addition, the project claims to be pursuing decentralization, which is ridiculous given that a single entity controls all currencies.
The official version is that the company behind Worldcoin, Tools for Humanity, will hand over control to a decentralized autonomous organization (DAO) and the Worldcoin Foundation.
These entities will be headquartered in corporate tax havens like the Cayman Islands and the British Virgin Islands – ironic destinations for a company that claims to be committed to transparency.
OpenAI, broken promises and corporate finance
Sam Altman recently testified before Congress expressing his support for government regulation of the artificial intelligence industry and stating that he was not involved with OpenAI.
However, he failed to mention that OpenAI, like Worldcoin and its orbs, initially promised to be an open source non-profit foundation dedicated to the advancement of humanity.
In reality, none of that has happened, making it even harder to believe that Worldcoin will deliver on its promises and mission.
Perhaps even more disturbing is the fact that Worldcoin has received over BRL 500 million in venture capital funding from companies such as a16z, Coinbase Ventures and Khosla Ventures (apart from more dubious sources like Sam Bankman Fried It is Three Arrows Capital).
In case you don’t know the last two, Sam Bankman-Fried is the founder of FTX, a cryptocurrency exchange that went bankrupt and left millions of people in the lurch.
He is currently accused of that wire fraud, conspiracy, securities fraud and money laundering.
all the Three Arrows Capital is a cryptocurrency fund that had insolvency problems and defaulted billions to investors.
The involvement of these companies in Worldcoin suggests that the intention of ChatGPT’s creator’s cryptocurrency was probably never to be fully open, decentralized, and positive for the world, but simply another gamble with working capital in the hopes of further enriching billionaires.
The community criticizes Worldcoin
Although Worldcoin has already attracted more than 2 million users worldwide with the promise of free money, more aware users are labeling the project as a scam and warning people to stay away from it.
“I would rather leave society and live in the woods if this dystopian nightmare device is applied so that people enjoy basic human rights.”said one user on Reddit, concerned about his privacy.
“For me there is not enough money to sell my identity. My fingerprints, DNA and eyes are not for sale.”said another.
“Never, ever give your biometric data to a company”, added another user.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
