World, Sam Altman’s ambitious project for verify human identity using iris scanshas managed to register 17.5 million people since its public launch in 2023. A figure that, although it may seem impressive, it barely represents 2% of its initial goal of one billion users.
a promise. Altman’s idea was to create a global network of digital identity verified by ocular biometrics. To do this, users have to appear before a spherical device called Orb which scans your irises and generates a unique digital code, the World ID. In exchange, they can access an application with various services while also receiving cryptocurrency tokens. worldcoinwhich is currently worth about 60 euro cents per unit.
“He is creating the disease, but he also wants to create the cure,” claimed a former employee of the company told Business Insider.
Regulation. The project has run into a wall of institutional rejection. Just like share The medium, Spain, Hong Kong, Portugal, Indonesia, Germany and Brazil have imposed vetoes, suspensions or precautionary orders, while in Kenya it was banned a month after the launch. German authorities concluded last year that data protection measures “would not be sufficient to implement an appropriate level of security against cybercriminals or state attackers.”
In October, the Philippines issued a cease-and-desist order, Colombia ordered to halt operations and delete data, and Thailand conducted raids arresting suspects for operating a digital asset business without a license. according to Business Insider. On the other hand, the Chinese Ministry of State Security warned that collecting iris data for cryptocurrencies could pose a threat to national security.
A questioned model. Beyond the legal obstacles, some experts consulted in the middle they have questioned the viability of the project. Nick Maynard, vice president of fintech research at Juniper Research, said that “I don’t see a definitive use case that they have solved that is going to generate significant traction. They need a real purpose to exist, and that is not entirely clear yet.”
The corporate structure is also complex, as Tools for Humanity (based in San Francisco and Munich) develops the technology; the World Foundation, from the Cayman Islands, controls the project; and World Assets Limited, in the British Virgin Islands, manages the token distribution. At the moment, the company has raised $240 million from investors such as Andreessen Horowitz, Bain Capital and Khosla Ventures, at a valuation of $2.5 billion.
The expansion strategy. According to former employees who have contacted with Business Insider, the company opted for an aggressive growth strategy in emerging markets, prioritizing countries where the promise of free cryptocurrencies generated traction among economically vulnerable populations. In Mexico, local operators had to cover the majority of costs for scanning locations, although Tools for Humanity paid the rent for a year. In Argentina, external organizers they even sent buses with people who traveled to be scanned in exchange for money.
Image: World
Luis Ruben De Valadéz, who worked as head of operations in Mexico, commented to the media that had to raise about 100,000 Mexican pesos (about 4,705.75 euros at the exchange rate) from family and friends to open seven stores in Mexico City. As he shared, independent operators charged commission in Worldcoin, and it was common for exchange houses to emerge near Orbs stations where users immediately exchanged their tokens to obtain cash.
The monetization dilemma. The company does not charge users to access its platforms, and its CEO Alex Blania has promised that they will not become data brokers. The company is known to earn revenue from verification fees (World ID fees) when external applications use its services. They also earn income through a program that allows them to rent or buy their own Orbs, and from processing fees on their World Chain blockchain.
However, a former employee revealed The company expressed doubts about whether these fees would generate profits on their own, indicating that the financial future would depend above all on the continued flow of capital from investors. “I have trouble seeing it as a business. There is no incentive to buy or lease an Orb beyond making money by scanning tons of eyes, and for users it is to get more coins,” commented Martha Bennett, vice president and principal analyst at Forrester, told Business Insider.
Bet on alliances. To accelerate growth, World announced partnerships with established companies. There is a pilot program with Match Group to verify Tinder users in Japan, and agreements with Stripe, Visa and the gaming company Razer. According to reported Semafor, Reddit was also in talks to use its verification services.
Nikhil Bhatia, professor of finance at the University of Southern California and specialized in cryptocurrencies, commented to Business Insider that “it is difficult to judge something that is a crypto with a market capitalization of 2 billion as anything more than experimental or a fad. Worldcoin is not a contender in any way as a currency or asset against the dollar or Bitcoin.”
And now what. The company has announced its intention to reach 100 million registrations over the next year, according to sources cited by the New York Post. But the road is full of questions. If you continue to require people to physically show up at your offices to have their eyes scanned, scalability could become complex. And if regulatory problems persist in the most populated markets in the world, it will be even more difficult for the company.
World faces something common in many technological projects: with a powerful futuristic vision and plenty of capital, it does not seem to have a product that solves an immediate problem for the majority of users nor a clearly profitable business model. At the moment many people need to be convinced.
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