The Wolf Den #743 - Worldcoin's 2024 Mirrors Orwell's 1984
Eyeball scans for useless crypto. Are you in?
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In This Issue:
Worldcoin's 2024 Mirrors Orwell's 1984
I Have An Exciting Announcement!
Bitcoin Thoughts And Analysis
Legacy Markets
The 4-Year Bitcoin Cycle
First Ledger, Now Trezor?
Fahrenheit Takes Over Celsius
Binance Introduces NFT Lending
Worldcoin's 2024 Mirrors Orwell's 1984
Approximately a week and a half ago, I highlighted a brief section on Worldcoin, stating that the project was in "advanced negotiations" with potential investors ready to infuse $100 million into the venture. Although tempted to delve into AI, biometrics, or dystopian conspiracy theories, I refrained, keeping my opinions to myself. Today, my plan is to go somewhat deeper while keeping the focus primarily on facts. We're gaining knowledge about Worldcoin swiftly, but there's a sense that we're still largely navigating in the dark. Let's delve into that.
It's now publicly confirmed that the parties engaged in these "advanced negotiations" with Worldcoin include Blockchain Capital (who spearheaded the fundraise), along with other prestigious investors such as a16z crypto, Bain Capital Crypto, and Distributed Global. With such influential backers and already exceeding 1.7M signups, it's fair to say that Worldcoin has evolved beyond a mere concept. It's a significant player that we're likely to hear more about in the upcoming months and years. So, prepare yourself, because the future has arrived.
Worldcoin first made its debut in October 2021, co-founded by Sam Altman (known for his work on OpenAI and ChatGPT) and Alex Blania (Tools For Humanity). Rather than offering a simplified version of what Worldcoin represents, the following are key points from their launch announcement.
“To rapidly get its new currency into the hands of as many people as possible, Worldcoin will allow everyone to claim a share of it for free. For this to happen, we first had to solve one major challenge: ensuring that every person on Earth can prove that they are indeed human (not a bot), and that they have not claimed their free share of Worldcoin already.
To address it, we built a new device called the Orb. It solves the problem through biometrics: the Orb captures an image of a person’s eyes, which is converted into a short numeric code, making it possible to check whether the person has signed up already. If not, they receive their free share of Worldcoin.
We are only a few months away from a global launch and are currently running field tests in many locations around the world. It is still early, but the results of these field tests make us optimistic that Worldcoin will soon connect the first billion users in one commonly owned crypto network.
Nothing like this has ever been done before and the outcome is uncertain. But we are obsessed with the idea that revolutionary new technologies like blockchain and cryptography can let us do something collectively that even governments have not been able to: increase individual empowerment and equality of opportunity on a global scale.”
Intriguing, isn't it? Eye scanning technology, $WLD token, the Orb, and a projected one billion users – these elements herald an exciting future, don't they? Yet, despite this, many of us may be excluded from participating, including myself. An examination of their terms of service reveals the reason.
“In addition, WLD tokens are not intended to be available for use, purchase, or access by US persons, including US citizens, residents, or persons in the United States, or companies incorporated, located, or resident in the United States, or who have a registered agent in the United States. We do not make WLD available to such US persons.
You are not located in, under the control of, a national, or resident of: Syria, the Crimea, Donetsk, Luhansk, Kherson and Zaporizhzhia regions of Ukraine, North Korea, Iran, Cuba, or any other country or region with whom the United States, the European Union, or any other country or jurisdiction has restricted trade in goods or services.”
Worldcoin presents itself as "accessible to everyone, irrespective of their country, background, or economic status," yet their terms of service exclude certain countries from participation. This is troubling in itself, but it doesn't address my primary concern: Worldcoin is intent on ensuring 'universal' access to the coin, but what about the next steps?
With a multitude of apps and tokens already available, is there a pressing need for another one? It appears that Worldcoin's primary interest lies in executing a 'fair' launch rather than considering the subsequent progression. Crypto projects are notorious for their grand unveilings, often followed by a disappointing lack of substance - a typical trope in the crypto world.
The screenshot below offers details on potential uses for the tokens.
So, the plan is to distribute tokens that govern more tokens and potentially enable purchases? Wonderful, great, terrific, hooray.
They literally don’t seem to know why the token should exist, and are waiting for users the determine the use cases? And in exchange for tokens you have to literally scan your eyeballs and deliver biometric data to a company that is inextricably tied to OpenAI, which is training artificial intelligence on new data?
Yikes.
I will keep my eyeballs to myself, thank you very much.
El Salvador's government distributed $30 of Bitcoin to its citizens to stimulate adoption, but the situation largely remained the same. Issues like gang violence, political corruption, drug abuse, homelessness, and food insecurity continue to hold more relevance for the people of El Salvador than a new currency. Will Worldcoin secure better adoption than Bitcoin? It's doubtful. The experience in El Salvador suggests that simply offering a minor financial incentive isn't enough to prompt people to adopt a new currency. Given that much of Worldcoin's current adoption is in South America, it's doubtful that a new cryptocurrency is what people there are yearning for.
Once again, it's a scenario where I'd be pleased to be proven wrong, but I must express my skepticism. While I appreciate the concept of a world where everyone has a recognized identity and a common currency, I question whether Worldcoin is the real solution. To be entirely candid, Worldcoin bears semblance to the kind of technology George Orwell cautioned us about in his novel, 1984. Although I'm eager for a future where crypto integrates with AI, I believe we shouldn't hasten the process.
The experiences of the past year have reinforced that no entity in the crypto world gets a free pass, and that's a lesson I don't intend to forget.
I Have An Exciting Announcement!
Tune in next week to Twitter Spaces (starting Wednesday), where I will be teaming up with Mario Nawful and Ran Neuner to host daily conversations at 10:15 AM EST. Times are changing for mainstream media, let’s take back journalism!
Bitcoin Thoughts And Analysis
Here is a live look at Bitcoin bulls attempting to maintain the red 200 MA as support.
This is a key line for many traders and algorithms. For now, it remains support. A drop below is not necessarily a big deal, but would likely signal that we will stay a bit lower for longer.
Legacy Markets
Equity markets remained stable while Treasury yields lingered near a two-month high as investors awaited news about a potential U.S. debt agreement. Two-year Treasury notes yielded 4.49%, and S&P 500 futures showed minimal change. European shares remained unchanged after mining stocks' early gains evaporated.
Marvell Technology Inc. saw a 17% surge in U.S. premarket trading due to its projected revenue increase from artificial intelligence technologies. Other tech companies, including Salesforce Inc., Advanced Micro Devices Inc., and Intel Corp., experienced over a 1% rise.
Stuart Cole from Equiti Capital UK Ltd. noted that the market's focus is on the U.S. debt ceiling discussions, but any positive developments can quickly overshadow these concerns.
Republicans and White House negotiators are nearing an agreement to increase the debt limit and cap federal spending for two years. While some details have been agreed upon tentatively, a final agreement is yet to be secured.
The tech rally also had positive effects in Asia, benefiting companies like Japan’s Screen Holdings Co., South Korea’s SK Hynix Inc., and Taiwan Semiconductor Manufacturing Co.
The U.S. dollar index saw a decline after four consecutive days of gains. In the UK, robust retail sales data strengthened the pound, reinforcing expectations of continued interest rate hikes.
The 4-Year Bitcoin Cycle
This visual is as straightforward as it gets. Just remember, past performance is not necessarily indicative of future results. But so far, so good.
First Ledger, Now Trezor?
Isn't it peculiar that while Ledger is under scrutiny, a cybersecurity firm has reportedly breached Trezor? I'm not implying that Ledger is implicated in any way, but the timing of this news is, at the very least, intriguing. However, it's important not to succumb to panic or impulsively switch from one wallet to another based on alarming headlines; such an approach will only lead to a perpetual sense of insecurity. Although the demonstration of the hack is unnerving, it involves complex technical prowess and requires physical access to your wallet. The best defense strategy includes not disclosing your ownership of a cold wallet, creating a robust pin plus passphrase, and concealing it effectively; this should mitigate 99% of your security concerns.s.
Here is Trezor’s response to the hack: “This appears to be a vulnerability called an RDP downgrade attack and as communicated on our blog in early 2020, RDP downgrade attacks require physical theft of a device and extremely sophisticated technological knowledge and advanced equipment," Trezor's chief technology officer Tomáš Sušánka said. "Even with the above, Trezors can be protected by a strong passphrase, which adds another layer of security that renders a RDP downgrade useless.” If you want to watch the video, you can do so HERE.
Fahrenheit Takes Over Celsius
Nearly a year has passed since Celsius entered bankruptcy, and following an extensive bidding procedure, the crypto consortium Fahrenheit has officially taken possession of the $2B in assets. The group leading this acquisition includes Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza, who will assume complete control of Celsius's staking, loan portfolio, BTC mining unit, and all other investments. The final step to formalize this news involves gaining regulatory approval for the bid, which has already been endorsed by both Celsius and the creditor committee.
Binance Introduces NFT Lending
Do you have a blue-chip NFT that you're considering leveraging? Binance now allows you to do so with loans at an annual rate of 7.91% and a loan-to-value ratio ranging from 40% to 60%. Currently, ETH is the only currency that can be borrowed against, and the accepted collections are BAYC, MAYC, Doodles, and Azuki, each with their distinct LTV ratios. As Coinbase broadens its reach into Base and Binance delves into the NFT space, 2023 is gearing up to be an electrifying year for exchange expansion.
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.
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