Sam Altman, the well-known CEO of OpenAI, the firm that introduced ChatGPT to the world, is apparently on the verge of securing $100 million in funding for his idea to use iris-scanning technology to establish Worldcoin, a safe worldwide cryptocurrency. Altman’s idea would be a rare bright point in a sector that has had a difficult year.
More Details About the Worldcoin
According to sources familiar with the matter, Worldcoin is currently in advanced negotiations to raise additional funds as it prepares to launch in the coming weeks. The aforementioned group of investors comprises both new and existing investors. Among the existing or previous investors include FTX founder Sam Bankman-Fried and internet entrepreneur Reid Hoffman, as well as Khosla Ventures and Andreessen Horowitz’s crypto fund.
Worldcoin was launched in 2019 by Altman and Alex Blania. Their endeavor has remained under the radar, similar to OpenAI, the ChatGPT inventor who reached a multibillion-dollar contract with Microsoft earlier this year.
Despite keeping a quiet profile, the company has big plans. They intend to use eyeball-scanning technology to develop a global identity system that will provide them unfettered access to their own global currency, Worldcoin.
Worldcoin’s Privacy Issues
The business claims that the orb, which will use iris biometrics to establish a person’s distinct personhood, holds the secret to its strategy. From there, it would establish a digital World ID that could be used in a range of everyday applications anonymously without disclosing the user’s identity. Additionally, they have added that users can get free Worldcoin tokens after proving their identity.
However, Worldcoin has come under fire for a number of things, most notably that the biometric scanning compromises user privacy. They have allayed these worries by stating that the business will not keep iris scans on file and that the gadget won’t damage consumers’ eyes.
After running in beta, Worldcoin is preparing to launch its blockchain protocol and start logging transactions within the next six weeks. The corporation, however, has said nothing about the subject of the fundraising.
Worldcoin Succeeds in the Midst of Crypto Winter
Whereas the collapse of Bankman-Fried’s cryptocurrency exchange FTX in November last year paved the way for a sharp drop in token prices and triggered a wave of crypto company failures, FTX was backed by venture capital fund Sequoia Capital, Chase Coleman’s Tiger Global Management, and Thoma Bravo.
Its demise, combined with the Bankman-Fried affair, prompted many blue-chip funds to reduce their involvement in the sector. According to a source acquainted with the financing, “It’s a bear market, a crypto winter.” This amount of expenditure is unprecedented for a project in this space.”
Worldcoin officials, on the other hand, argued that their solution addresses two issues highlighted by the increasing sophistication of artificial intelligence. This includes discriminating between humans and bots, as well as implementing a form of universal basic income to compensate for employment losses caused by AI.