Global Regulators Halt Biometric Blockchain's Expansion Over Data Privacy Concerns

Worldcoin (WLD) plummeted 14% in a single day amid intensifying global regulatory scrutiny, token unlocks, and broader market weakness, marking a significant setback for the biometric-identity blockchain project. The sharp decline, which outpaced the broader crypto market's 9% drop, followed a string of regulatory actions targeting the project's data collection practices and operational model. Colombia, the Philippines, and Thailand all issued cease-and-desist orders, forcing Worldcoin to halt operations in these jurisdictions and delete biometric data collected from local users. The moves underscore the growing challenges faced by projects leveraging sensitive personal data for blockchain innovation.

The regulatory crackdowns have compounded existing structural pressures. Over 37 million WLD tokens-worth approximately $25 million-were unlocked in recent weeks, exacerbating sell pressure as the token remains in a multi-month sideways trend after its initial surge from $0.60. Analysts note that while the bearish momentum has temporarily dominated, signs of potential stabilization are emerging. The token's price action near the apex of a consolidation pattern and liquidity clustering above $0.63 suggest a possible reversal, though uncertainty persists about the direction of the next move.

Worldcoin's tokenomics and regulatory risks remain central to its long-term viability. The project, which aims to create a global "proof of personhood" system via biometric verification, faces significant hurdles in scaling its World ID ecosystem. While the platform has verified millions of users, real-world utility for the WLD token remains nascent, with primary use cases currently limited to user grants and governance incentives. Regulatory bodies, particularly in Europe, have raised concerns over data privacy, child safety, and cross-border data flows, leading to investigations and operational restrictions that could delay widespread adoption.

Price forecasts for WLD are mixed, reflecting the tension between short-term bearish fundamentals and longer-term adoption potential. Analysts at Blockchain News predict a cautious bullish scenario, targeting $0.75–$0.85 by December 2025, contingent on regulatory clarity and reduced token unlock pressure. Key technical indicators, including the RSI and MACD, suggest the token could test the $0.76 resistance level, with a successful breakout potentially opening the path to $0.85–$0.90. Conversely, a breakdown below $0.64 support could trigger a deeper correction toward $0.63 or even the 52-week low of $0.26, according to bearish scenarios.

The project's success will hinge on its ability to navigate regulatory scrutiny while demonstrating tangible utility for its token. For now, investors are advised to monitor unlock schedules, regulatory developments, and on-chain adoption metrics as critical signals. As one analyst noted, "Worldcoin's trajectory is less about speculation and more about whether it can scale compliant onboarding and convert verified users into economic activity".