Worldcoin’s Controversial Launch Fails to Lift AI Token Trade in August

The overall cryptocurrency market went through a topsy-turvy scenario so far this year, due to several macroeconomic events. Meanwhile, the controversial launch of Worldcoin has shifted the focus of investors toward AI-powered tokens. However, the recent trading performance, as seen by Kaiko, suggests that the AI tokens remained unshaken despite the launch of the controversial crypto.

Why is Worldcoin in Discussion?

Worldcoin (WLD) was launched on July 24 this year and has caught the eyes of crypto enthusiasts. The main reason behind the hype of the crypto is its co-founder, Sam Altman, who is also the CEO of OpenAI.

Meanwhile, at the time of writing, the price of Worldcoin (WLD) dropped 1.49% in the last 24 hours to trade at $ 1.14.

Worldcoin claims to focus on establishing a network, which is exclusively comprised of authentic individuals, excluding automated bots. This San Francisco-based company intends to allocate ‘World IDs’ to individuals globally. By implementing this ‘global verification of identity,’ Worldcoin envisions a future where individuals won’t have to disclose personal information such as names, phone numbers, or email addresses when interacting with websites.

However, regulators and privacy advocates worldwide have expressed significant concerns about the project, citing a perceived lack of transparency in the organization’s data collection methods.

The accumulation of vast amounts of personal data by a single company raises significant data privacy concerns.

Also Read: Texas Senator Ted Cruz Bullish On Bitcoin, Says Bitcoin Mining Benefits US Economy

How Are Other AI Tokens Fairing?

Although the launch of Worldcoin has triggered hype over the AI tokens, it seems that the trading remain subdued in August. Recent data by Kaiko showed that the trading volume of AI-affiliated tokens remained flat last month.

The analysis showed that the trading volume of AI tokens rose moderately last month, closing at about $ 870 million, as compared to $570 million at the end of July. However, compared to the start of the year, the volume marked a notable decline.

Meanwhile, an analyst at Kaiko, Dessislava Ianeva recently said that AI token enthusiasm waned starting in July, largely influenced by a shift in global risk sentiment. The combined open interest for five prominent AI tokens, FET, GRT, RNDR, OCEAN, and ROSE, plummeted from $170 million in February to $60 million in August.

Also Read: US SEC Interlocutory Filing Is “Hypocritical” And Has No Impact, Says Ripple CLO