As of 10:07 UTC today, WorldCoin price down 7% from its previous close. This decline is not attributed to the broader market trends but rather to FUD stirred by a major trader’s claims that WorldCoin is not affiliated with OpenAI.
Worldcoin realistically might become the greatest transfer of wealth of this entire cycle. Unfortunately, this wealth transfer isn’t in the form of universal basic income as their mission suggests, but instead to the pockets of the team and insiders. I’ve posted a bit on it… pic.twitter.com/Gr83mnt3Ms
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— DeFi^2 (@DefiSquared) May 13, 2024
Historically, WorldCoin has benefited from its perceived association with Sam Altman, the CEO of OpenAI, which fueled its past rallies, such as the significant rise seen after OpenAI launched its text-to-video tool over a month ago.
Despite the recent FUD, there are compelling reasons to believe that WorldCoin could be poised for a rebound. A significant development out of Asia, specifically Malaysia, may boost WorldCoin’s global adoption and counteract the current negative sentiment.
Read More: Worldcoin introduces World Chain on Ethereum Layer-2
Malaysia Gives Nod To WorldCoin Eye Scans
After extensive deliberations, the Securities Commission of Malaysia (SC) has permitted WorldCoin to start scanning irises in the country, a crucial step in building its global network. This regulatory green light is a substantial achievement, signaling growing acceptance and potential for increased adoption of WorldCoin in the region.
Move Follows High-Level Deliberations In April
In April, Malaysian Prime Minister Anwar Ibrahim tweeted about Malaysia’s openness to WorldCoin’s iris-scanning technology. He mentioned a virtual discussion with the co-founders of Tools for Humanity (TFH), the company behind WorldCoin, including Sam Altman and Alex Blania, alongside Ole Ruch from Nordstar.
Pagi tadi saya telah mengadakan perbincangan secara maya menerusi persidangan video dengan pengasas bersama syarikat Tools for Humanity (TFH), Sam Altman dan Alex Blania, serta Ole Ruch dari Nordstar.
Menteri Pelaburan, Perdagangan Antarabangsa dan Industri, Senator Datuk Seri… pic.twitter.com/NBTkjuJl4i
— Anwar Ibrahim (@anwaribrahim) April 19, 2024
The meeting also included prominent Malaysian officials such as Investment, International Trade, and Industry Minister Senator Datuk Seri Utama Tengku Zafrul Tengku Abdul Aziz and Digital Minister Gobind Singh Deo.
Prime Minister Ibrahim highlighted that the 30-minute discussion covered various aspects of rapid technological advancements. TFH presented updates on the WorldCoin project, emphasizing its initiatives related to identity verification and creating a global, inclusive financial network. The project prioritizes confidentiality and the protection of private information.
Malaysia News Could Reverse WorldCoin FUD
This positive regulatory news from Malaysia will likely counteract the recent FUD that has impacted WorldCoin. The approval to use iris-scanning technology in Malaysia can significantly enhance WorldCoin’s credibility and adoption, providing a bullish catalyst for cryptocurrency. The recognition from a significant regulatory body, coupled with the backing of high-ranking officials, underscores the project’s potential and could spark renewed investor confidence.
While WorldCoin has experienced a notable price drop due to unfounded FUD, the regulatory approval from Malaysia presents a strong case for a potential rebound. This development highlights the increasing acceptance and integration of WorldCoin’s technology, suggesting that the current dip may be a temporary setback.
WorldCoin Range-Bound After Bulls Fail At Key Resistance
Source: TradingView
After a sustained price drop for the better part of the week, WorldCoin found strong support at $4.646 towards the end of the day. Bulls attempted a reversal but failed at $4.927, but lost momentum today. Currently, WorldCoin is rangebound between the $4.927 resistance and $4.646 support.
If bulls gain enough momentum in the day and push WorldCoin through the $4.646 resistance, then a complete bullish reversal to $6 or higher could be in the offing.
However, if volumes remain low, as they are at the moment, then WorldCoin could continue trading in a narrow range between $4.646 and $4.927. This could continue until there is a significant move in the broader market.
On the other hand, if bears continue the trend that has prevailed this week, the $4.646 support would come into focus. If bears can push WorldCoin through this support, then prices below $3 could become a reality within the week.
Is It Time To Buy WorldCoin?
While there is a risk of the downside momentum accelerating, the odds are high that a rebound is coming. This could be triggered by the news coming out of Malaysia that points to WorldCoin’s growing adoption. Besides, Bitcoin still holds strong above the $60k support, an indicator of a potential bounce upside move.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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