While the debut of Worldcoin (WLD) drew attention to artificial intelligence (AI) tokens, recent trading data from Kaiko indicates that AI tokens have stagnated despite the hype surrounding Worldcoin’s launch.
According to the data, the trading volume of AI-related tokens increased steadily during the past month, with an increase in the trading volume of AI tokens from $570 million to $870 million from the end of July to the end of August. However, it has decreased significantly since the beginning of 2023, when it exceeded $7 billion, and has stagnated since then.
Dessislava Ianeva, an analyst from Kaiko, noted that enthusiasm for AI tokens began to diminish in July, primarily due to a change in global risk sentiment. The total open interest for five of the biggest AI tokens, excluding WLD, dropped from $170 million in February to $60 million by August.
Despite #Worldcoin ‘s controversial launch at the end of July, the weekly trade volume for AI-affiliated tokens remained subdued in August. pic.twitter.com/gq8iEgNTPG
— Kaiko (@KaikoData) September 9, 2023
Worldcoin debuted on July 24, 2023, garnering attention from the cryptocurrency community. The buzz around the project is mainly attributed to its co-founder, Sam Altman, who also serves as the CEO of OpenAI.
Worldcoin’s primary objective is to create a network comprised solely of genuine individuals, excluding automated bots. The San Francisco-based firm plans to issue World IDs to people, aiming for a future in which individuals can interact with websites without revealing personal information like names, phone numbers or email addresses, thanks to a “global identity verification” system.
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However, global regulators and privacy advocates have raised substantial concerns regarding the initiative, pointing to what they see as a lack of clarity in the organization’s data-gathering procedures. The aggregation of extensive personal data by a solitary entity gives rise to substantial apprehensions about data privacy.
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Author: Amaka Nwaokocha