Sun, June 16, 2024

Worldcoin Faces Hong Kong Probe for Privacy Violations

Crypto lock, web3, worldcoin

Quick Look:

  • Worldcoin violated data privacy rules, excessively retaining biometric data and lacking transparency.
  • An enforcement notice demands that Worldcoin stop collecting biometric data. Undercover operations found over 8,000 scans.
  • Concerns about Worldcoin’s viability due to devaluation and upcoming token unlock, risking $50 million daily sell pressure.
The Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong has launched a comprehensive investigation into Worldcoin. It uncovered significant violations of personal data privacy regulations. Privacy Commissioner Ada Chung Lai-ling spearheaded this investigation. She has revealed alarming issues related to data retention, transparency, and participant information within Worldcoin’s operations.

Excessive Data Retention by Worldcoin Uncovered

The PCPD’s findings indicate that Worldcoin has been excessively retaining personal data, including biometric data such as iris and facial images, for up to ten years, far beyond what is necessary for their operations. Additionally, there have been breaches in personal data collection, retention, transparency, access, and correction.

The investigation highlighted a lack of adequate information provided to participants about the purposes of data collection and their rights. Furthermore, Worldcoin’s privacy statements and consent forms were unavailable in Chinese, potentially leaving many participants uninformed about the risks of disclosing their biometric data.

Over 8,300 People Scanned by Worldcoin in Hong Kong

In response to these findings, Privacy Commissioner Ada Chung Lai-ling has issued an enforcement notice demanding the immediate cessation of iris and facial image collection by Worldcoin. This enforcement notice comes after undercover operations conducted from December 2023 to January 2024 at six Worldcoin locations in Hong Kong. They discovered that 8,302 people had gone through scanning for identity verification purposes.

Crypto Expert Warns of Worldcoin’s Viability

The revelations have triggered a strong reaction from the cryptocurrency community. Besides, the renowned trader DeFi^2 expressed serious concerns about the long-term viability of Worldcoin (WLD). DeFi^2 pointed out the significant daily devaluation of Worldcoin, currently experiencing a 0.6% drop at its $60 billion fully diluted valuation. He also warned of a massive token unlock scheduled in just 70 days, which could result in nearly $50 million in daily sell pressure due to venture capital and team allocations being unlocked.

Impending Token Unlock Could Create $50 Million Daily Sell Pressure

DeFi^2 compared the situation to previous instances of market manipulation, suggesting that insiders might benefit from hedging locked tokens. He pointed out that a token unlocks for venture capital and the team, scheduled in 70 days, could result in nearly $50 million in daily sell pressure. His warning about Worldcoin has led investors to seek more reliable alternatives, highlighting ETFSwap (ETFS) as a potential solution.

The market impact on Worldcoin has been significant. Security concerns and increased scrutiny have caused the price of Worldcoin (WLD) to drop. The tokenomics of Worldcoin reveal a vulnerability to aggressive sell-offs, with the Worldcoin Foundation having sold $200 million worth of tokens, accounting for 18% of the circulating supply. The upcoming significant token unlock in 70 days is projected to introduce a 4% daily inflation in supply, exacerbating the situation.

Worldcoin Price Drops Amid Security Concerns and Token Unlock

In the wake of Worldcoin’s troubles, ETFSwap (ETFS) is positioning itself as a promising alternative in the crypto space. Aiming to reshape trading by tokenizing exchange-traded funds (ETF), ETFSwap offers features such as tokenized ETFs on the blockchain, allowing seamless transactions without external authorization or third parties. The platform has been audited by Cyberscope, ensuring its security and reliability.

ETFSwap Token Presale Predicts 20,000% Surge

The ETFSwap token, named ETFS, serves governance and utility purposes within the platform. Its presale has generated significant interest, with Stage 1 pricing the token at $0.00854 and Stage 2 at $0.01831. Besides, experts predict a potential surge in the value of ETFS by 20,000%. Therefore, this resulted in a 200x yield for early investors and offered over 100% APR on investments.

Now, the crypto market reacts to the privacy concerns surrounding Worldcoin. Meanwhile, ETFSwap’s innovative approach and secure platform attract investors looking for stable and profitable opportunities. The unfolding situation underscores the importance of regulatory compliance and transparency in the rapidly evolving world of cryptocurrencies.

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