AI Tokens Face Decline in Trading Volume Amid Worldcoin's Debut
Despite the hype surrounding human identity project, AI tokens see a slump in trading activity.
The recent launch of Worldcoin (WLD) garnered attention for AI-related tokens, but recent trading data collected by Kaiko suggests that AI tokens have stagnated despite the buzz generated by the Human Identity project's launch.
According to the data, the trading volume of AI-related tokens steadily increased over the past month, rising from $570 million to $870 million between late July and late August. However, since the beginning of 2023 when it surpassed $7 billion, it has seen a significant decline and has remained stagnant ever since.
Dessislava Ianeva, an analyst at Kaiko, observed that enthusiasm for AI tokens began to wane in July, primarily due to a shift in global risk sentiment. The total open interest for the top five AI tokens, excluding WLD, dropped from $170 million in February to $60 million in August.
Worldcoin made its debut on July 24, 2023, capturing the crypto community's attention. The excitement surrounding the project is primarily attributed to its co-founder, Sam Altman, who also serves as the CEO of OpenAI. Worldcoin's primary goal is to create a network composed exclusively of real individuals, excluding automated bots. The San Francisco-based company aims to issue World IDs for people, envisioning a future where individuals can interact with websites without revealing personal information such as names, phone numbers, or email addresses, thanks to a system of "global identity verification."
However, global regulators and privacy advocates have raised significant concerns about the initiative, highlighting what they consider a lack of clarity in data collection procedures. The aggregation of vast amounts of personal data by a single entity raises substantial privacy concerns.