While the highly anticipated debut of Worldcoin (WLD) sent ripples through the world of artificial intelligence (AI) tokens, recent trading data from Kaiko suggests that the AI token market has struggled to maintain its momentum despite the hype surrounding Worldcoin’s launch.
According to Kaiko’s data, the trading volume of AI-related tokens experienced steady growth over the past month, climbing from $570 million at the end of July to approximately $870 million by the end of August. However, this apparent resurgence follows a significant decline that began in early 2023 when the trading volume for AI tokens exceeded a whopping $7 billion and has since stagnated.
Dessislava Ianeva, an analyst at Kaiko, pointed out that enthusiasm for AI tokens started to wane in July. This decline in interest can be attributed primarily to shifting global risk sentiment. Notably, the total open interest for five of the most prominent AI tokens, excluding WLD, plummeted from $170 million in February to $60 million by August.
Worldcoin, which made its debut on July 24, 2023, grabbed the spotlight within the cryptocurrency community. The project garnered significant attention, largely due to its co-founder, Sam Altman, who also serves as the CEO of OpenAI.
Worldcoin’s core mission revolves around the creation of a network composed exclusively of verified individuals, excluding automated bots. The San Francisco-based company intends to issue World IDs to individuals, aiming for a future where users can interact with websites without divulging personal information such as names, phone numbers, or email addresses, thanks to a revolutionary “global identity verification” system.
However, the initiative has not been without its critics. Global regulators and privacy advocates have raised substantial concerns about the project’s data collection practices, citing a lack of transparency regarding how the organization gathers and utilizes personal data. The aggregation of extensive personal information by a single entity has raised significant data privacy concerns in the era of heightened awareness surrounding digital privacy.
As the AI token market grapples with stagnant trading volumes and shifting sentiment, the impact of projects like Worldcoin on the broader landscape of artificial intelligence and blockchain technology remains a topic of ongoing discussion and scrutiny.
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