Worldcoin pulls back after parabolic run amid suspensions in Kenya and Indonesia
Worldcoin has dropped sharply as new legal challenges emerge in Kenya and Indonesia.
Following a strong rally in April, the token has lost some of its recent gains, falling 7% in the last day and more than 22% this week. Trading activity in Worldcoin (WLD) has increased 64% despite of the price drop, indicating that traders are responding swiftly to any changes. This comes at a time when Worldcoin is increasingly dealing with global regulatory issues.
In one of the latest developments, the Worldcoin Foundation was ordered by a Kenyan High Court on May 5 to remove all biometric information it had gathered in the nation, including facial and iris scans. As reported by local media outlet Kenyans.co.ke, the ruling also bans the project from collecting any new data.
It criticized Worldcoin’s past use of crypto incentives in exchange for sensitive information. This came after a lawsuit from the Katiba Institute challenged how the company handled personal data using its app and orb devices.
Citing legal violations, Indonesia has also suspended Worldcoin’s digital identity platform, World ID. One of the businesses that operated under the Worldcoin umbrella, according to the Ministry of Communication’s May 4 statement, was not properly registered. As a result, authorities put a hold on Worldcoin’s certification and summoned the relevant parties for additional questioning.
Following its suspension of its services in Indonesia, Worldcoin’s developer Tools for Humanity shared a statement with crypto.news explaining its position and next steps:
“World has voluntarily paused its proof of human verification services in Indonesia and is seeking clarification on the terms of the relevant licenses and permits. We look forward to continuing the constructive and supportive conversations we’ve had over the past year with the government ministries concerned. If there are any shortcomings or misunderstandings with our permits we will certainly address them.
New technologies are often met with skepticism and anxiety before they are adopted by mainstream society and regulatory stakeholders. The mobile phone, the automobile and the computer had hostile receptions when they were first introduced but with time they proved to be beneficial for society.
This is why World has been very careful in introducing TFH to Indonesia, engaging in deep and lengthy discussions with the government, making sure that we complied with all existing regulations and even informing the public through press conferences, public events and educational campaigns, before we launched our service.
What we do is to use technology to verify individual uniqueness in the AI era where misinformation and disinformation, including identity theft and deep fakes, is rife.
We do this without retaining any personal information of individuals and instead put that information exclusively in the hands of the people who should own and control the data – you, the user. This information is not available to World nor its contributors such as Tools for Humanity.”
Tools For Humanity
From a technical perspective, WLD is currently trading close to $0.88 after declining from its April highs of $1.20. The price has been stable since late April and is trading just above support, which is around $0.86.
However, the token has indicated short-term weakness by breaking below the 20-day moving average. After cooling from overbought levels to 47, the relative strength index indicates less buying pressure but not yet complete bearish momentum.
The next area to keep an eye on is $0.80 or even $0.75 if WLD loses support close to $0.86. Conversely, a rebound might drive the price back toward the $0.94 resistance level, but regaining bullish momentum might require high volume and positive developments.
The future of Worldcoin now depends on how it handles mounting regulatory pressure in key markets.
