admin The criticism, posted on X and amplified across crypto markets, focused on Worldcoin’s WLD token distribution, its iris-scanning sign-up system and the risk that verified accounts could be traded through informal channels. ZachXBT alleged that the project’s structure mirrored some of the low-circulation, high-valuation token models that drew criticism after past crypto collapses. World has not accepted such characterisations and has maintained that its identity system is designed to preserve privacy while helping users prove they are human online.
World, previously known as Worldcoin, was co-founded by Altman, Alex Blania and Max Novendstern, with Tools for Humanity playing a central role in developing the ecosystem. Its core proposition is World ID, a “proof of human” credential generated after a user verifies their uniqueness through an Orb, a metallic device that scans the iris. The project argues that such infrastructure will become more important as artificial intelligence makes it harder to distinguish humans from bots across payments, social platforms, ticketing, gaming and online services.
ZachXBT’s criticism has gained traction because it combines two sensitive issues in digital finance: token dilution and biometric data. WLD has a total supply of 10 billion tokens, with about 3.3 billion in circulation and roughly 4.9 billion unlocked as of April. The project says daily unlock schedules will continue without a cliff and that the unlock rate is due to fall by 43 per cent from July 24, 2026. Critics argue that even a gradual schedule can pressure prices when early investors, team allocations and ecosystem reserves become more liquid over time.
The token has traded far below its peak, with WLD changing hands near $0.25 and down roughly 98 per cent from its 2024 high above $11. The market capitalisation remains above $800 million, while the fully diluted valuation is materially higher because it assumes the full 10 billion-token supply. That gap has reinforced concerns among traders who see future supply growth as a continuing overhang.
World’s defenders counter that WLD is not designed as an equity-like investment and does not give holders profit rights. The project says 75 per cent of the original token supply was allocated to the World Community, with the rest assigned to Tools for Humanity investors, team members and reserves. Its stated aim is to create a global identity and financial network rather than a conventional crypto asset built only around speculation.
Privacy and consent remain the larger challenge. World says Orb verification data is not sold and that its personal custody model gives users control over their information. It has said data is encrypted, stored on the user’s device and deleted from the Orb after transfer. The project also argues that World ID allows people to verify humanness without revealing names, email addresses or other personal details to third-party apps.
Regulators have taken a more cautious view. Portugal’s data regulator ordered a temporary halt to biometric collection in 2024 after complaints involving minors, inadequate user information and problems linked to withdrawal of consent. Spain halted iris-scanning activity and later pushed the company to justify the necessity and proportionality of biometric processing under European data rules. Kenya suspended the project and later required deletion of biometric data collected from users. Thailand also ordered suspension and deletion steps after privacy concerns.
Those actions do not amount to a finding that the entire project is unlawful worldwide, but they show the difficulty of scaling a biometric identity network across jurisdictions with different data protection standards. Biometric identifiers are more sensitive than passwords or phone numbers because they cannot be replaced easily if compromised. That has made iris-based verification a flashpoint for privacy advocates, even where the system uses cryptographic protections.
The black-market concern raised by ZachXBT adds another layer. If verified World IDs or app accounts can be bought and sold, the project’s anti-bot promise could be weakened. Identity-linked crypto systems are especially vulnerable to arbitrage where users in lower-income markets receive token incentives that may be worth more to them immediately than the long-term value of retaining control over a verified account.
