Decentralized identity project Humanity Protocol has successfully closed a $20 million funding round, elevating its valuation to $1.1 billion. The funding round was co-led by industry giants Pantera Capital and Jump Crypto, marking another significant milestone in the project’s journey.
Previously, Humanity Protocol raised $30 million at a $1 billion valuation in May 2024, reflecting steady growth in its mission to revolutionize decentralized identity verification.
Challenging Worldcoin with Palm Scan Technology
Humanity Protocol aims to rival Worldcoin, a project co-founded by OpenAI’s Sam Altman. While Worldcoin relies on iris scans for identity verification, Humanity Protocol takes a different approach, employing palm scans as its core technology.
The project positions itself as a safer and more ethical alternative to Worldcoin, which has faced global scrutiny and legal challenges over its privacy and data handling practices.
Brazil Bans Worldcoin: Major Setback for Altman’s Vision
In a significant development, the Brazilian government recently banned Worldcoin, alongside the company behind it, Tools for Humanity. The move comes amid concerns over the collection of iris scans and their use for cryptocurrency payments.
Brazil’s decision aligns with global scepticism regarding Worldcoin’s privacy policies and its ambitious goal of replacing passwords with biometric authentication.
This ban has dented the global expansion plans of Worldcoin, which has faced regulatory hurdles in multiple regions. The decision highlights rising concerns over the ethical implications of biometric data collection and its potential misuse.
Worldcoin Token Unlock Event Weighs on Market Sentiment
Worldcoin (WLD) is also facing market headwinds, as a linear unlocking event is set to release 37.23 million tokens, representing 3.92% of its circulating market cap. The token unlock, worth approximately $70 million, is likely to create significant pressure on WLD’s price.
At press time, the WLD token is trading at $1.87. According to data from CoinMarketCap, Worldcoin’s current market capitalization stands at $1.79 billion, with a circulating supply of 958.89 million tokens.
Market analysts predict that the impending token unlock could further erode investor confidence, compounding the challenges faced by the project amidst regulatory scrutiny and market volatility.
The Future of Decentralized Identity
As the decentralized identity space heats up, the Humanity Protocol’s innovative approach with palm scan technology could offer a compelling alternative to iris-based systems like Worldcoin. With fresh funding, strong backing from prominent investors, and a focus on addressing privacy concerns, Humanity Protocol seems poised to capitalize on the controversies surrounding its competitor.
The unfolding competition between these projects will not only shape the future of decentralized identity but also raise critical questions about data security, ethics, and user privacy in the crypto world.