Last November, when the artificial intelligence (AI) project ChatGPT launched, AI tokens witnessed massive gains all the way to early January. However, the latest on-chain data suggests that most of these tokens have lost momentum over the last six months.
Some of the AI tokens that recorded growth of more than 200% by the end of January include The Graph, Render, and Singularity. However, data from blockchain analytics firm Kaiko indicates that investors are no longer interested in such tokens. According to the company’s report, the top AI tokens have seen their daily transaction volumes decline significantly since February.
Will the launch of Worldcoin attract investors to the crypto AI sector? Let’s find out.
Worldcoin Project Launches
On Wednesday, the long-awaited crypto project Worldcoin launched. Its whitepaper describes Worldcoin as an AI-based crypto project established to create a globally-inclusive financial network. Among the pioneers of the project is Sam Altman, the ChatGPT founder.
Following the launch, Worldcoin began collecting personal data from people around the world using devices called orbs. According to the organization behind the project, the Worldcoin Foundation, the goal of collecting such information is to differentiate between human beings and AI. Everyone who gets their iris scanned receives a World ID.
Meanwhile, a section of investors remains optimistic that Worldcoin might make the crypto AI sector attractive again. However, the daily transaction volumes of the Worldcoin token, WLD, have not been promising over the last few days.
A report from another blockchain research company Santiment shows a declining WLD transaction volume since the project’s launch. As per the report, WLD tokens transacted have dropped to 8.82 million from 12.33 million, representing a 42% decline.
Can Worldcoin Cause a Rally?
While the bulls have successfully defended WLD from dropping below $2, there are no signs that the token will record significant gains any time soon, considering that a number of European regulators have already announced their intentions to investigate Worldcoin.
In addition, a group of crypto players led by Ethereum founder Vitalik Buterin has criticized Worldcoin’s move to scan people’s irises, warning everyone not to give out personal data.
With that said, it does not look like Worldcoin will cause other AI tokens to rally.
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