Should WLD traders brace for impact after the latest challenge

  • Spain cited privacy concerns and asked the project to stop work in the country.
  • WLD’s price decreased within one hour but data showed that it might recover.

Worldcoin [WLD], the project co-founded by Open AI’s CEO Sam Altman, is in trouble again.  This time, it is no other country than Spain, asking the project to stop operations in the country. Before now, about 360,000 Spanish nationals had their eyeball scanned using the Orb.

The Orb is Worldcoin’s eye-scanning technology which gives users WLD tokens. However, Spain’s Agency for Data Protection noted that it was concerned about people’s privacy.

Another country raises alarm

According to AP News, the agency told Worldcoin’s parent company Tools for Humanity Corporation that it should cease activities for three months. But Worldcoin, through Jannick Preiwisch, its data protection officer, responded:

“The Spanish data protection authority (AEPD) is circumventing EU law with their actions today, which are limited to Spain and not the broader EU, and spreading inaccurate and misleading claims about our technology globally.”

This was not the first nation to have issues with Worldcoin. Kenya, France, and India have made their reservations known especially as it concerns data protection. But some weeks back, AMBCrypto reported how World ID daily users crossed one million, suggesting that it had overcome the lingering challenges.

However, this recent development indicated that Worldcoin might continue to deal with regulatory issues. One other thing AMBCrypto noticed was that it came at a time when market participants were bullish on WLD. But there was a reason that traders were looking to the token for potential gains.

Between the 18th and 21st of March, NVIDIA, the semiconductor development company will host an AI conference. As a result, crypto traders have been buying AI-themed tokens, Worldcoin included.

FUD may not stop WLD

At press time, WLD changed hands at $7.34. This was a 9.20% increase in the last 24 hours. Previously, WLD closed in on $8. But the last hour before this writing was chaotic for the cryptocurrency as the development triggered a drawdown.

How about the sentiment around the token? AMBCrypto took it upon itself to ascertain if the issues with Spain have not dampened participants’ optimism.

Source: Santiment

At press time, data analyzed from Santiment showed that the Weighted Sentiment (shown above) had dropped to -0.33. This decline was a testament to the Fear, Uncertainty, and Doubt (FUD) because of Spain’s statement.

In crypto, FUD refers to negative opinions and news around a project. Most times, this affects the cryptocurrency’s valuation in a bad way. Furthermore, AMBCrypto considered the annual inflation rate.

A high inflation rate means that the supply of an asset is increasing. This could make the market value fall. But as of this writing, Worldcoin’s annual inflation rate dropped, indicating that the value might climb.

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Therefore, one can conclude the recent drawdown was only temporary and WLD’s price might recover.

In addition, on-chain data showed that the number of WLD holders has been increasing, suggesting that the long-term potential was bullish.

Chart showing the increasing number of Worldcoin holders and decreasing inflation rate

Source: Santiment

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