Worlcoin Tokenomics Under Fire Amid Shady Market Maker Deal

Worlcoin Tokenomics Under Fire Amid Shady Market Maker Deal

Explore the latest crypto trends: scrutiny on Worldcoin's tokenomics, Alchemy Pay's partnership, Ripple's expansion, and more in our newsletter.

Hi all and welcome to this week’s last edition of the Datawallet newsletter, a place where we cover the latest and greatest from the crypto world. Today’s drop will cover the following topics: 

Worldcoin tokenomics under fire amid shady market maker deal

Sam Altman's Worldcoin is under fire following its token launch, with critics contending that the process heavily favored market makers who initially controlled over 90% of the Worldcoin token (WLD) supply. Despite an impressive debut price of $2.30 per token, the venture's fully diluted value, surpassing top tokens like ADA, SOL, and stETH, might be jeopardized as the remaining 98% of WLD comes into circulation, possibly deflating the token's value.

Worldcoin's ambitious distribution strategy aims to allocate WLD to "the majority of humans who are alive today". However, its model has drawn criticism for its perceived potential to erode the token's value once the floodgates of new tokens are opened. Worldcoin's counter-argument rests on their goal of creating a large-scale human network, with the majority of WLD to be doled out to new and existing users over time.

The project employs iris-scanning technology to validate a person's "uniqueness and humanness" before awarding WLD tokens, designed to form the core of a new identity and financial network. While the transparency from Worldcoin with its tokenomics has sparked controversy, it remains to be seen whether its fully diluted valuation can hold up amidst the criticisms and its ambitious token launch strategy.

Alchemy Pay announced a partnership with Checkout.com

Alchemy Pay, a payment gateway that facilitates fiat-crypto transactions, has recently joined forces with parent processor Checkout.com. Through this partnership, Alchemy Pay's on and off-ramp will be seamlessly integrated with Checkout.com's Visa and Mastercard channels. The press release also hints at the future integration of NFT Checkout. 

Alchemy Pay asserts that this collaboration will enable them to achieve an exceptional payment acceptance rate within the industry while providing users with the ability to conveniently purchase and sell cryptocurrencies through these card providers.

Ripple looking to shore up in South Korea

After emerging from its prolonged legal dispute with the SEC, Ripple remains determined to expand its business and extend its services to unexplored territories. South Korea has become the latest target for Ripple's ambitions. In a recent announcement, the company revealed its partnership with Catalyze Research, based in Seoul, aiming to enhance the recognition of XRP Ledger (XRPL). By joining forces with Catalyze Research, Ripple seeks to raise awareness about XRPL and further solidify its presence in new markets.

Worldcoin probed by France’s regulator

French data protection regulator CNI has initiated an investigation into the crypto venture, Worldcoin (WLD), which was launched by Sam Altman of OpenAI. According to a spokesperson from CNIL, the legality of the data collection methods employed by Worldcoin is under scrutiny. They also expressed concerns about the preservation of biometric data. 

Worldcoin implements retina scanning technology to prevent individuals from claiming cryptocurrency rewards multiple times. The regulatory body deemed these practices as "questionable" and has sought further information regarding their compliance with privacy regulations.

Shibarium’s Ethereum bridge goes live

The developers announced on Friday that a bridge has been established for public testing, connecting the soon-to-be-launched Shibarium, a layer 2 blockchain built on the Shiba Inu network, with Ethereum. 

This bridge enables users to transfer tokens between the two networks. Chief developer Shytoshi Kusama disclosed that initially, users will be able to transfer testnet ether tokens to Shibarium when it commences operations next month. It is important to note that as of now, real assets are not supported by this bridge. Each transfer is anticipated to take a maximum of 30 minutes.

Other breaking news

  • US advances crypto regulation
  • Blockchain security firm Quantstamp charged by SEC
  • LST lending protocol Gravita expands to Arbitrum
  • Modular blockchain Avail launches the Optimistic Ethereum Virtual Machine
  • Crypto.com secures footing in Holland 

Wrapping up

In this week's final Datawallet Daily, Worldcoin faced criticism and scrutiny from both market critics and French regulators over tokenomics and data collection practices. Alchemy Pay formed a strategic alliance with Checkout.com, paving the way for smoother fiat-crypto transitions. Ripple set its sights on South Korea for expansion, while Shibarium launched a public testing phase for its Ethereum bridge. These developments reflect the ever-evolving dynamics of the crypto world. Join us next week as we continue to track the latest news and trends.