Sam Altman’s cryptocurrency project, the Worldcoin Foundation, is introducing its services worldwide, despite facing regulatory resistance in the US, where the company was co-founded by OpenAI’s CEO.
The Berlin and San Francisco-based startup announced on Monday that its technology will be available in 35 cities across 20 countries, including its Worldcoin token, a blockchain-traceable cryptocurrency that can be used once a user has verified their identity.
At the heart of the effort is a physical “orb” that scans the eye. Worldcoin’s founders say that it is necessary in a future where the distinction between humans and robots becomes increasingly difficult due to advancements in AI technology. Once users have proven that they are not robots, they can receive one of the company’s tokens.
However, the company’s goals are being thwarted by US regulators cracking down on digital assets, as they fear that cryptocurrencies could be used as vehicles for speculation and fraud. As a result, Worldcoin tokens will not be available in the US at launch.
“When we started thinking about it, we didn’t think it would end up looking like a ‘world without the US’ coin. And here we are,” Altman told the Financial Times. “I would say that 95 percent of the world population does not live in the US. The US does not decide whether a project like this succeeds or fails.”
While the introduction of Worldcoin comes at a time when AI is making significant strides – such as the release of OpenAI’s ChatGPT last year – it also coincides with an unprecedented phase of turmoil for digital tokens and the broader crypto space.
Last year, the industry experienced a crisis of trust, leading to the collapse of leading markets like FTX and Celsius, prompting regulators to take a series of enforcement actions against speculative crypto projects.
Despite the regulatory hurdles, investors have put around $250 million into Worldcoin, including venture capital groups Andreessen Horowitz and Khosla Ventures, internet entrepreneur Reid Hoffman, and Sam Bankman-Fried, prior to the collapse of his FTX empire.
Alex Blania, co-founder of Worldcoin, said that due to regulatory control in the US, the company can only make limited statements about its commercial ambitions.
But the project “will make money,” said Tiago Sada, the company’s product lead. “All of our products are profit-oriented. At some point, there will be a range of different wallets and experiences that you can make money with.”
Worldcoin also outlined plans to retain about 20 percent of all tokens it issues and use their value to fund “orb production and initial protocol development… ecosystem development and preservation.”
Altman admitted that the eye scan technology “has a clear ew factor,” but he is confident that the company can attract users with the right explanation.
“There have been a lot of bad actors in crypto, and that’s really unfortunate… We need to earn people’s trust, which is why we explain so much about how the technology works and the roadmap for decentralizing the company.”
Referenz: Financial Times
