Worldcoin: The Most Dystopian CRYPTO!? Here Are The Facts!!

Worldcoin has finally launched so far The controversial crypto project has Scanned over 2 million eyes around the World to develop what it claims is a Decentralized digital ID in exchange for Crypto naturally there have been plenty Of concerns and opinions about worldcoin And no shortage of speculation about Whether its Associated cryptocurrency is The next big thing or another VC pump And dump today we're going to tell you Everything you need to know about Worldcoin including where it came from How it works whether it's worth it and Which of the conspiracy theories may be True If you're a long time viewer of the Channel you'll know we covered worldcoin When it first went viral back in October 2021 that was nearly two years ago where Does the time go so we reckon a Refresher is required now we'll keep the Project's history short for the sake of Time you can check out our first video For more info on that front Okay so Worldcoin was founded by Sam Altman Max Novenstern and Alex blania Sam Altman is of course the co-founder Of openai the company behind chat GPT he Came up with the idea for worldcoin in 2019 and brought Max a philosopher and Alex a physicist on board to make it a Reality To that end they Incorporated an

American software company called tools For Humanity in August 2019. What's strange is that the official Website for the company only notes Sam And Alex as being co-founders this could Be because Max appears to have stepped Away from the project in January 2021. Before that Max had served as the CEO of Worldcoin since that time Alex has Become the CEO and the de facto face of The project as for Sam meanwhile Alex Mentioned in an interview from March 2022 that Sam is currently the chairman And revealed that Sam apparently signs Off on everything that Alex does this Would make sense considering that the Purpose of worldcoin is to help Humanity Adjust to the effects of AI at least on Paper Now Sam believes that AI will lead to a Massive concentration of wealth that can Only be mitigated through Universal Basic income or Ubi something that will Be paid for by AI logically this Requires a global digital ID of some Kind to ensure that everyone is getting Their fair share at the same time a Digital ID will make it possible to Differentiate between humans and Increasingly human-like Ai and this has Become another selling point for Worldcoin since the release of chat GPT Worldcoin initially wanted to stay in Stealth mode but a Bloomberg journalist

Blew the lid on the project in June 2021. later that year the project raised 25 million dollars from crypto VCS and Came out of stealth mode it has since Raised an additional 215 million dollars From crypto VCS grand total 240 million big ones In October last year the world coin Foundation was incorporated in the Cayman Islands its website notes that The foundation is quote memberless Meaning it has no owners or shareholders Instead it's governed by a board Consisting of three people who in turn Govern the crypto project itself The world coin foundation's website also Specifies that its purpose includes Quote helping achieve certain targets of Un sustainable development goal 16. now For context the un's sustainable Development goals or sdgs are the origin Of all the dystopian Technologies being Pushed on the population including Digital ID cbdcs and smart cities more About that later now in March this year World coin revealed its digital ID Dubbed World ID along with a software Developer kit to leverage it in May it Launched a crypto wallet dubbed the World app and late last month it Launched the world coin token with the Ticker wld on optimism a layer 2 for Ethereum So how does it all work

Well it all begins with the orb the Device used by worldcoin to scan your Eye and generate a world ID Two World coins credit they provide an Extremely detailed technical breakdown Of the orb on their website Alex Explained in an interview that it cost Them 50 million dollars to develop its Seriously high tech The only thing the worldcoin website Doesn't seem to mention is where these Orbs are made World coins orbs are Reportedly manufactured in Germany for Tools for Humanity the aforementioned Software company behind worldcoin According to the worldcoin website there Are 360 active orbs these orbs are Operated by aptly titled orb operators Who are hand-picked by World coin There's an application process on their Website Alex revealed in an interview that orb Operators make anywhere between one and Five dollars for every person they Convince to look into the orb paid in Unspecified stable coins obviously this Gives orb operators a huge incentive to Scan as many eyes as possible now as I Mentioned in the introduction over 2 Million people have scanned their eyes So far specifically their Iris that's The colored part of the eye that's Because every person's iris is unique And difficult to fake especially to an

Orb and of course it's the iris scanning That has everyone concerned well the Good news is that worldcoin no longer Collects data by default worldcoin's old Website noted that it was sending all Orb-related data to tools for Humanity For training purposes today however you Have the option to opt out of this data Collection The bad news is that it's not yet Possible to verify if this data is being Processed locally on the orb and deleted After registration when you opt out of Data collection that's because not all Of the orb has been open sourced as you Can see only the hardware is open Sourced this means you must Trust Worldcoin And before you scan your iris you need To download the world app which comes With its own set of privacy concerns now The world app is used to create and scan The QR code which the orb Associates With your iris This information is then uploaded as a Hash a unique number to ethereum's Optimism Because the orb deletes all this data Assuming of course you opted out and Because the hash isn't connected to your Personal identity the resulting World ID Preserves your privacy at least in Theory in practice the fact that your World ID is connected to your wallet

Addresses on your world app threatens This privacy if you watched our video About how blockchain analytics companies Track transactions you'll know that's Because of all the kyc at crypto on and Off ramps the moment you send or receive Crypto to or from the world app using an Exchange you've completed kyc on it Becomes very easy to identify you now if You're wondering why anyone would line Up to have their Iris scanned given These circumstances well the answer is Money or rather gains from the wld Tokens that all World ID holders receive Fortunately or unfortunately claiming Wld tokens is not a straightforward nor As profitable as expected World coins FAQ page notes that world ID Holders only get one wld per week To claim this free wld world ID holders Must open the world app on a regular Basis after getting their world ID this Gives the illusion that the app has lots Of users something that Alex has Questionably boasted about in interviews But back to the wld token Now wld's tokenomics have been Infamously difficult to find despite Being clearly noted on the worldcoin Website that's because the tokonomic Section of the white paper is blocked in So many countries that even crypto News Company coindesk had a hard time Accessing it

We managed to get access to this info by Using a VPN set to Puerto Rico in case Anyone's wondering Now wld is an erc20 token on both Ethereum and optimism it has an initial Supply of 10 billion which is intended To correspond to one wld per person 7.5 Billion people plus 2.5 billion wld for Worldcoin and the Project's early Investors The tokonomics notes this Supply could Change in the future For now wld has no inflation but an Aggressive vesting schedule with the Following participants as recipients 75 to the worldcoin community held by The worldcoin foundation Around 10 to the initial team around 2 Percent for a reserve held by tools for Humanity and around 13 to early Investors given that worldcoin raised 240 million dollars this means that it Sold wld to early investors at an Average price of around 20 cents per Token The wld tokens allocated to the team Tools for Humanity and early investors Will only begin investing in one year For now it's only the community tokens That are vesting now this doesn't look Like much from a distance but when you Zoom in you can clearly see that the Community token vesting schedule alone Is extremely aggressive right now there

Are just over 100 million wld in Circulation by the end of the year there Will be over 1 billion wld in Circulation Now the caveat is that not all of this Wld can or will be sold you'll recall That world ID holders are only receiving One wld per week Although over 2 million people have Scanned their Iris World coin's own June Analytics dashboard suggests there are Only one million World app wallets 50 Conversion so to speak this means that There will be no more than one million Wld being sold each week now assuming a Wld price of around two and a half Dollars that's only two and a half Million dollars of cell pressure each Week even then this assumes that the 1 Million World app users are taking the Time to periodically log in and claim Their wld a few million dollars of cell Pressure each week isn't all that much To be fair this assumes that the number Of wld sellers won't increase but that's Arguably safe to assume not many people Are going to scan their eye for two Dollars a week hence the reportedly slow Uptake which worldcoin denies Now the only wild card on the supply Side is the world coin Foundation which Could sell and give away wld to fund all The stuff noted here On that note the world coin white paper

Notes that the world coin Foundation Controls all World coin smart contracts With a four of six multi-sig wallet that Is what we call Centralized In any case on the demand side we have Well nothing at least for now the world Coin white paper notes that wld is a Utility token but states that quote the Community of users will determine the Token's utility the thing is that the World coin Community currently has no Way of doing this Regardless the absence of demand drivers Could mean that the small amount of new Supply coming from World ID users and The worldcoin foundation could be enough To suppress its price once the hype has Faded if utility isn't introduced in a Year's time selling by other wld Recipients could crash it now as with All crypto projects wld's potential Ultimately depends on worldcoin's Roadmap the closest thing that worldcoin Has to a roadmap is its quote open Source roadmap which has no specific Dates but the Milestones are Straightforward open source everything As soon as possible not a bad plan Besides that there are no shortage of Milestones to be found in interviews With the team and on the worldcoin Website for starters worldcoin wants to Decentralize everything this is going to Require creating a robust governance

Process which is presumably in the Process of being put together Alex also mentioned in an interview Earlier this year that worldcoin will Eventually be creating its own layer 2 For ethereum which will be home to the World ID protocol it seems that Worldcoin is planning to expand to Solana as well and apparently has plans To introduce an on-chain credit score Yikes And speaking of dystopian stuff Worldcoin is in the process of ramping Up production of its orbs and wants to Have 1500 of them in circulation by the End of the year Alex said there will eventually be Multiple orb manufacturers something That's technically possible already due To its open sourced hardware for what It's worth Alex also said that it will Eventually become possible for Individual people to create their own Orb from scratch if they want This is reminiscent of helium the Peer-to-peer internet crypto project That also open sourced its hardware and As many manufacturers and diyers Building its hotspots And the worldcoin website's metrics page Also appears to contain a hidden Milestone One of the metrics is planets which is Defined as quote total number of planets

Where signups have been conducted with An orb now call me crazy but this seems To foreshadow World coin expanding to Well other planets probably just a joke What's not so funny however is the Information on worldcoin's risks page Which is almost hidden at the bottom Right hand corner of the website quotes From this page have gone viral and for Good reason They basically reveal the conditions Under which the project could fail and These conditions are quite possible First world coin warns that because the Project aims to become decentralized Success may not be guaranteed quote There are significant uncertainties as To how these Technologies function at Scale and the extent to which users Around the world will find the project And the wld token useful in other words As we start to hand the project to the Community they could run it into the Ground now this is a legitimate risk Considering that the current incentive Among all wld holders is to sell The entire reason they scanned their Eyes was to make a profit if there's no Profit they are gone Second worldcoin warns that the crypto Project will fail if the foundation Can't sell enough wld to fund ecosystem Development quote acceptance of the wld Tokens distributed by us requires that

There be Outlets to transfer wld tokens To others or to spend tokens as a Currency which may not develop or grow With sufficient scale to support Successful growth and Adoption of the Protocol now this is a very big risk When you remember that the foundation's Ability to sell wld fundamentally Depends on there being strong demand Drivers for the token which are Currently absent this could create a Chicken and egg problem where demand Drivers can't be introduced unless wld Is sold Third world coin warns that the project Will fail if it doesn't get enough Adoption quote if over time the numbers Of individuals and businesses that chose To utilize wld is limited we may be Forced to cease operations that support The project Also quote in this case it is possible That owners of wld May no longer be able To utilize their tokens or realize any Value from wld they purchased or hold Now this is scary because worldcoin Doesn't specify what limited means to Put things into perspective worldcoin Initially believed that it would onboard Over a billion people by this point but It seems to be stuck at just over 2 Million again this is simply because Nobody will scan their eyes for two Dollars a week

Fourth worldcoin warns that regulations Could kill the project quote Developments or changes in regulatory Treatment or unanticipated enforcement Activity could negatively affect the wld Tokens in various ways including for Example through a determination that the Verification mechanism is unlawful under Data protection regulations or that the Wld tokens are regulated financial Instruments in this case worldcoin makes It clear that quote any such Determination may result in a Termination of wld distribution or of The project itself and as some of you May have heard Regulators in Europe are Already investigating worldcoin over its Data practices if they find significant Issues it's probably over Fifth worldcoin warns that crypto Regulations could also kill the project Quote certain jurisdictions including The European Union China Russia and Turkey have already adopted laws Regulations or directives that may Affect the ethereum and optimism Blockchain networks in general and the Project in particular pretty Self-explanatory Sixth worldcoin warns that the success Or failure of the project depends Heavily on the hardware the orbs quote The success of the project depends Significantly on our ability to produce

Distribute and service a hardware device Known as the orb and its related Software which is used to produce a Unique verified code known as a world ID For each user Alex mentioned in many Interviews that they were having issues With producing orbs during the pandemic Due to the chip shortage the energy Crisis in Europe which hit Germany hard And ongoing geopolitical tensions Between China Russia and the West could Continue to impede orb production And finally worldcoin warns that any Data issues could be the end too quote If security or data privacy breaches Occur or if there are incidents of other Unauthorized or improper access to use Of or destruction of user data the Ability of the project to continue Functioning could be disrupted or Terminated So this brings us to the concerns that We have about worldcoin and trust me When I say that we have no shortage of Them Our first concern relates to what some Would say are misleading claims about The project by the team let's start with A classic claim World ID is Decentralized Aside from the fact that the world coin Foundation controls all of world coin Smart contracts with that four of six Multi-sig wallet optimism is also

Controlled by a multi-sig we couldn't Find how many signers there are but it Doesn't change the fact that world ID is Not that decentralized layer twos are Centralized The other claim is that worldcoin hasn't Been targeting developing countries a Criticism that's been raised on many Occasions Now this claim is inconsistent with the Distribution of wld and the location of Most of worldcoin's orbs both seem to be Concentrated in developing countries Never mind Alex claiming in interviews That the world app has lots of active Users when well they're likely just Checking to claim their wld Our second concern relates to Regulations in March last year Alex did An interview with the epicenter podcast And one of the hosts made a very Powerful prediction the rollout of Worldcoin will be the Libra moment for Governments around the world and some Would say we're starting to see that Already For reference Libra was the crypto Project revealed by Facebook in 2019. if You've watched any of our videos about Crypto regulations you'll know that Libra was the Catalyst for regulatory Concerns governments were terrified of a Corporation introducing a currency that Would compete with their Fiat currencies

From our perspective governments also Want to maintain control of the identity Of their citizens this is as much if not More important than maintaining control Of a currency They need to know who their citizens are And have some idea of what they're doing And where they are be it for tax Purposes or otherwise worldcoin could Interfere with this imperative That would mean another wave of crypto Crackdowns this time on decentralized Digital ID which make no mistake is Badly needed the fact that governments Are in the process of introducing their Own digital IDs makes such a Crackdown Seem very likely this ties into our Third concern and that's that world Coins technology will be adopted by our Governments now as amazing as it is that Everything about worldcoin is going to Be open source it also means that anyone Will be able to develop their own orb And blockchain and digital ID the only Hurdle will be hardware and this is the Pain point that governments could press Similar to their restrictions around AI They could restrict certain digital ID Related hardware for government use it's Possible that creating this Hardware was The true purpose of worldcoin recall its Un connections And this relates to our fourth concern And that's the worldcoin's mission seems

To have shifted over time when it began It was all about Ubi now it seems to Have shifted its focus to fighting deep Fakes and the like even then it's Unclear what worldcoin's mission Currently is nor how it plans on Achieving it more circumstantial Evidence to the idea that it was never About the crypto and all about the Hardware Conspiracy theories aside World coin's Initial Mission actually makes no sense When you think about it remember how Sam Said that Ubi is needed because of the Concentration of wealth that will occur Because of AI well this concentration Will only occur if AI remains closed Sourced and controlled if AI is made Open source and available to the average Person then this concentration of wealth Probably won't occur of course open Source AI is something that neither the Corporations nor governments want at one Extreme it would allow for total freedom At The Other Extreme Total Chaos However making AI available to as many People as possible is arguably Preferable to letting companies like Microsoft and governments like China Maintain total control of it the same is True for other powerful Technologies Like digital ID and I'll reiterate that We desperately need a truly Decentralized digital ID so while

Worldcoin may not be the technology we Need it could nonetheless be a step in The right direction at the very least it Has everyone talking about what to do About digital ID and this counts as a Step forward in our book The sooner we reclaim our identities as Individuals the better after all we Could have all the decentralized money In the world but if our identities are Still centrally controlled by Governments it may not matter if there's Anything we've learned about Decentralizing identity it's that the Hardware matters a lot So let's hope it doesn't fall into the Wrong hands And that's all for today's video folks If you learned something new let me know By Smashing that like button if you want To make sure you keep learning subscribe To the channel and ping that Notification Bell if you want to help Others learn take a second to share this Video with them And if you've learned enough to know That you've got to stack SATs make sure You're storing them in a secure way and Acquiring them without paying too much In fees The coin Bureau deals page has the Biggest discounts on the best hardware Wallets and up to forty thousand dollars In airdrops and bonuses on the most

Liquid exchanges the link is down in the Description thank you all so much for Watching and I'll see you next time this Is guy over and out Foreign [Music]