The Deceit Behind Worldcoin: How Silicon Valley’s Prestige-Driven Slot-Machine Fundraising Is Putting Data At Risk

It wasn’t long ago when Silicon Valley’s big names were able to garner mass investment for their latest “world-changing” ideas with relative ease due to a cheap money economy and the glamour associated with a glittering portfolio of success stories. But with the latest venture capital raised for the Sam Altman-fronted Worldcoin project, of 115 million dollars, it seems the Silicon Valley slot machine has been pulled once again regardless of the ethical and financial implications of the project.

Skepticism Over Worldcoin’s Charitable Project

Worldcoin’s pitch is twofold. The core of the project is The Orb, an identity authentication device based on retina-scanning technology. This data, as part of an effort to address the digital identity problem, would be distributed alongside a token called Worldcoin and was proposed by the developers as a form of “universal basic income” or UBI.

For many, it seemed that the knee-jerk reaction to a charitable project was too good to be true. A token lacking a tokenomic model seemed unlikely to function as a currency for basic needs like food and shelter. The UBI aspect of the project appeared to be a distraction from its true objective of collecting biometric data.

Scrutiny on Project Backers and Defense by Blockchain Capital


Even more concerning was the revelation that the Orb served purposes beyond mere identification verification. In countries like Cambodia and Kenya, the device facilitated the creation of a lucrative black market for biometric data. The Worldcoin Foundation faced accusations of exploiting this situation under the pretense of Western charity during the beta testing phase.

Considering this news, observers focused their scrutiny on the project’s backers. Blockchain Capital, the main investor in Worldcoin, defended their financial support in a Twitter thread, explaining their rationale. Spencer Bogart, General Partner of Blockchain Capital, sees Worldcoin as a compelling solution to the long-standing Sybil problem. The Sybil problem refers to the vulnerability of digital networks to fraudulent activities or impersonation by malicious participants. Blockchain Capital has seemingly prioritized theoretical digital solutions over the privacy rights and interests of people in the developing world.

Silicon Valley’s “Moral Hazard” and Tech Industry Dominance

The controversial funding round for Worldcoin highlights the broader issue of a “moral hazard” stemming from Silicon Valley’s dominance in the tech industry. Many powerful players in the market believe they can both maximize their wealth and contribute to societal betterment. Convenient marketing often highlights the cash rewards, creating a dangerous illusion and overshadowing potential pitfalls.

Greater attention and ethical regulation are necessary to safeguard data in future tech projects. We must individually research projects before joining the venture capital trend, as the responsibility currently rests with us.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

Previous articleCrypto Regulatory Roulette: Will the U.S. Presidential Election Impact the Next Bull Run?
Next articleHong Kong New Crypto Regulations: Things You MUST Know
Steve Gates
Steve shows his dedication by holding 90% in cryptocurrencies, 10% to pay the bills.