A firm behind the World digital identity network sold $135 million worth of its native WLD token to its early backers, Andreessen Horowitz and Bain Capital Crypto.
The sale, announced on Wednesday, aims to support the World Network in the United States and beyond. The company plans to use the funds to build more infrastructure for issuing World IDs, which help verify a person’s humanity online.
User Growth and Biometric System
Since it launched its Orb device, which scans a person’s irises to collect biometric information, over 26 million people have used the World Network. Of these, 12.5 million have obtained a World ID by using the Orb.
The firm says that more than 12.5 million people across more than 160 jurisdictions now hold a World ID. This widespread adoption shows growing demand for tools that prove a user is human rather than a machine.
Also Read: Worldcoin Breaks $2 Barrier, Holder Sentiment Shifts Bullish
Regulatory and Legal Challenges
The project’s use of biometric data has met with resistance in several countries. Critics argue that paying individuals for their biometric information can undermine true informed consent.
They worry about data privacy and the risks of a centralised system holding sensitive personal details.
In Kenya, the High Court in Nairobi ordered the company to delete all iris scans and other biometric data collected in the country. This ruling is part of a broader set of legal challenges against the startup’s data collection methods.
In Indonesia, the Ministry of Communication and Digital Affairs paused the firm’s operating permit. Officials cited reports of suspicious activity around the World ID service. These moves highlight the hurdles the World faces as it tries to roll out its system worldwide.
Ethics and Privacy Concerns
Many experts question whether offering financial rewards for biometric data is ethical. They point out that even with payment, people may not fully understand how their data will be used.
There is also a debate about centralising so much personal information. Some argue that a single entity holding millions of iris scans could be a target for misuse or theft.
Despite these concerns, the company defends its approach. In its Wednesday release, World said that as artificial intelligence advances quickly, tools to tell humans and machines apart must keep up.
The firm believes that a strong system for verifying personhood will be vital in an era of evolving AI. The company also said it expects the World Network to become one of the first networks that can sustain itself financially.
The $135 million sale is meant to back the long-term mission of World and fund its growth. Early supporters like Andreessen Horowitz and Bain Capital Crypto have backed the project since its start. Their continued investment signals strong confidence in World’s vision.
Also Read: Worldcoin Chain To Integrate USDC And Circle’s CCTP V2 Following U.S. Expansion