Worldcoin, the ambitious digital identity and cryptocurrency project co-founded by Sam Altman, has officially launched its native token, WLD. This marks a significant milestone for the project, which aims to create a globally inclusive identity and financial network. Alongside this major development, the past week has seen notable updates across the crypto space, including platform upgrades, regulatory scrutiny, and shifting investment strategies from major funds.
Worldcoin Officially Launches WLD Token
Worldcoin has released an open letter signed by Sam Altman announcing the official launch of the WLD token. The project, more than three years in the making, seeks to establish a new identity and financial network owned by everyone. If successful, Worldcoin could significantly expand economic opportunities, protect privacy, advance global democratic processes, and potentially pave the way for an AI-funded universal basic income (UBI) system.
The Worldcoin ecosystem consists of a privacy-preserving digital identity (World ID) and a digital currency (WLD). Users who undergo verification will receive WLD tokens, with the goal of expanding access to as many people as legally possible.
Major exchanges, including Binance, OKX, and Huobi, have already listed WLD trading pairs. According to Dune Analytics data, as of July 30, over 257,000 users had claimed more than 6.42 million WLD tokens through the airdrop, with each address receiving an average of approximately $54.72 worth of tokens.
However, the project has not been without controversy. Ethereum co-founder Vitalik Buterin published an article expressing his concerns about biometric proof of personhood systems like Worldcoin. He highlighted four main risks: privacy, accessibility, centralization, and security. Buterin also shared insights on preventing coercion and the renting or selling of IDs within such systems, proposing potential solutions while acknowledging that some issues may be inherent limitations.
Adding to the challenges, France's privacy watchdog has launched an investigation into Worldcoin, raising questions about the legality of its biometric data collection and storage practices. The probe is being conducted with support from relevant authorities in Bavaria, Germany.
RootData Upgrades Its Crypto Data Platform
Crypto data platform RootData has undergone a comprehensive upgrade, introducing four major new features: an integrated points reward system, wallet-based login, token price and economic model data, and a Vietnamese language version.
The points system allows users to earn rewards by contributing content to the platform. Wallet login enhances user convenience and lays the groundwork for future Web3 functionalities. The addition of token pricing and economic models provides valuable secondary market information, helping users make more informed decisions. The Vietnamese localization addresses the growing demand from users in Vietnam.
RootData is a structured, visual data platform that offers detailed information on crypto projects, including funding rounds, team details, and latest news. It connects projects through ecosystems, tags, and collections, aiming to be a premier data gateway for discovering high-quality crypto assets. 👉 Explore more data insights
Sequoia Capital Reduces Crypto Fund Size
Sequoia Capital has downsized its cryptocurrency fund from $585 million to $200 million, according to a report from the Wall Street Journal. The firm's ecosystem fund has also been reduced from $900 million to $450 million. The decision is attributed to the prolonged market downturn, with Sequoia opting to focus more on supporting early-stage startups rather than larger institutions facing challenges in the current environment.
Security Incidents: EraLend and Kannagi Finance
zkSync-based lending protocol EraLend suffered an exploit resulting in a loss of approximately $2.76 million. The team identified the attack as a read-only reentrancy vulnerability, where the attacker manipulated oracle prices to drain the USDC pool. Other pools remained unaffected. In response, EraLend temporarily halted borrowing, USDC supplying, and SyncSwap LP supplying, and significantly reduced interest rates for the USDC pool to protect affected positions from liquidation.
The team has since identified a centralized exchange account potentially linked to the attacker and is collaborating with law enforcement. Investigations are ongoing to locate and apprehend those responsible.
In a separate incident, Kannagi Finance, a DeFi project on zkSync Era, appears to have conducted a rug pull. The project's official Twitter account has been deleted, and its token, KANA, has been in a steady decline since its all-time high in March. Recently, the attacker moved 600 ETH (approximately $1.13 million) into Tornado Cash.
Industry Moves: Wintermute Expands in Asia
Crypto market maker Wintermute is relocating a portion of its workforce to Singapore, according to co-founder Yoann Turpin. Approximately 4% of its 85 employees will move to support the company's derivatives business in the region. Turpin also mentioned that Dubai is a potential location for a third office if the company decides to expand further. Wintermute currently has offices in London and Singapore.
CoinDesk Acquisition Nears Completion
An investor group led by Matthew Roszak of Tally Capital and Peter Vessence of Capital6 is close to acquiring crypto media outlet CoinDesk for $125 million, as reported by the Wall Street Journal. CoinDesk was acquired by Digital Currency Group (DCG) in 2016 for $500,000 and generated over $50 million in revenue in 2022. DCG had been seeking a buyer for CoinDesk since February, following the bankruptcy of its subsidiary Genesis.
Presidential Candidate Kennedy Discloses Bitcoin Purchase
U.S. Democratic presidential candidate Robert F. Kennedy Jr. has confirmed that he purchased 14 Bitcoin—two for each of his seven children—following the Bitcoin Conference in May. At a price of approximately $29,500 per Bitcoin at the time, the total purchase was worth around $414,000. Kennedy has previously stated that, if elected, he would exempt Bitcoin from capital gains taxes when converted to U.S. dollars.
Meta's Reality Labs Reports Significant Losses
Meta's Reality Labs division, responsible for its virtual and augmented reality initiatives, reported an operating loss of $3.7 billion in the second quarter. This follows a loss of $13.7 billion in 2022 and brings the total losses since the beginning of last year to approximately $21.3 billion. Meta anticipates that operating losses for Reality Labs will "increase meaningfully" year-over-year due to ongoing product development and efforts to expand its ecosystem.
Ant Group Plans Restructure for Potential IPO
Ant Group is planning a major restructuring to pave the way for a financial holding company license and a potential Hong Kong IPO, according to Bloomberg. The restructuring would involve spinning off non-core financial businesses, including its blockchain and database management services, as well as its international operations.
Key Data Points from the Week
- Paradigm may have sold all its MKR holdings, realizing a profit of $17.16 million.
- Venture firm a16z has transferred 30,933 MKR to Coinbase over 12 days, leaving its holding address with just over 6,000 MKR.
- FalconX withdrew 8,951 MKR (approximately $10.5 million) from Binance in the past week.
- The market capitalization of USDC has fallen to $26.5 billion, a two-year low.
- Azuki's floor price dropped 63% with trading volume down 78% over the past month.
- Rocket Pool recorded its largest single-day redemption, with 6,720 rETH redeemed on July 24.
- Binance's spot market share has decreased from 64% at the start of the year to 50%.
- The number of StarkNet bridge users has surpassed 600,000.
Frequently Asked Questions
What is Worldcoin's main goal?
Worldcoin aims to create a global identity and financial network that is accessible to everyone. Its core components are World ID, a privacy-focused digital identity, and WLD, a digital currency. The project envisions expanding economic opportunity and potentially enabling a pathway to AI-funded universal basic income.
How can I claim WLD tokens?
Verified users can claim WLD tokens through the Worldcoin protocol. The process involves verifying your humanity through an orb-shaped biometric device to receive a World ID, which then makes you eligible for token grants. Always ensure you are using official channels to avoid scams.
What makes RootData's upgrade significant?
The upgrade enhances user experience with a rewards system, easier wallet login, crucial market data, and broader language support. These features make it a more comprehensive tool for crypto research, especially for users looking for detailed project information and economic models. 👉 Get advanced market data
Why did Sequoia reduce its crypto fund?
Sequoia Capital reduced the size of its crypto and ecosystem funds in response to the prolonged market downturn. The firm is shifting its strategy to focus more on early-stage startup investments, which it believes are better suited to the current market conditions than larger, established institutions.
What should users do if affected by the EraLend exploit?
EraLend has temporarily paused certain functions to mitigate further risk. Affected users should avoid interacting with the compromised USDC pool and follow the project's official communication channels for updates on reimbursements and the restart of services.
Is now a good time to invest in meme coins?
Many analysts caution against investing in meme coins for long-term holdings, especially during bear markets. Their prices are highly volatile and driven by speculation rather than utility. While some achieve high valuations, they carry significant risk and are not suitable for all investors.