Multicoin Capital Acquires 60 Million Worldcoin Tokens Amid Declining Retail Interest

In a significant over-the-counter (OTC) transaction, Multicoin Capital has acquired 60 million Worldcoin (WLD) tokens directly from the project’s team, signaling continued institutional confidence in the biometric identity protocol despite a 21% price decline over the past month.

Institutional Bet on Worldcoin's Future

Multicoin Capital, a thesis-driven investment firm founded in 2017 and focused on cryptocurrency and blockchain initiatives, executed the purchase using a wallet address associated with the firm. On-chain data indicates that the transaction involved transferring 30 million USDC to the Worldcoin team, resulting in the receipt of the 60 million WLD tokens. This move underscores a strategic accumulation by institutional players, even as broader market indicators point to waning retail enthusiasm. The acquisition highlights a divergence between institutional and retail investor behaviors in the cryptocurrency space. While retail participation has cooled, firms like Multicoin Capital appear to be positioning for long-term growth in identity verification technologies powered by blockchain.

Declining Retail Metrics and Market Performance

Recent data reveals a marked slowdown in Worldcoin’s user base and public interest, which could impact its adoption trajectory.

• New active wallet addresses have dropped sharply since September, according to blockchain analytics, reflecting reduced onboarding of individual users.
• Google Trends shows search interest for “Worldcoin” plummeting from a peak score of 100 in September—driven largely by the token’s listing on the Upbit exchange—to a current score of 6.
• WLD’s price has erased gains from the Upbit-driven rally, trading at $0.49614 as of the latest data, with a 2.57% increase in the past 24 hours but a net loss of over 21% in the preceding month.
• The broader cryptocurrency market has seen a modest 0.5% rise in total capitalization during the same 24-hour period, suggesting the token’s short-term rebound aligns with general recovery trends rather than project-specific momentum.

These metrics indicate potential challenges in sustaining retail-driven growth, which could pressure Worldcoin’s market position if institutional inflows do not offset the decline.

Regulatory Pressures Mounting in Key Markets

Worldcoin faces increasing scrutiny over its iris-scanning verification process, which has led to enforcement actions in multiple jurisdictions and raises questions about data privacy and compliance in biometric blockchain applications. In late November, Thai authorities ordered the suspension of Worldcoin’s enrollment activities in the country, mandating the deletion of biometric data collected from over 1 million individuals. This followed an October raid on one of the project’s iris-scanning sites.

“This collaboration will enhance the effectiveness of law enforcement in prosecuting and suppressing unlicensed digital asset businesses, while protecting users from lack of legal protection and mitigating risks of scams and money laundering,” noted Jomkwan Kongsakul, Deputy Secretary-General of Thailand's Securities and Exchange Commission (SEC).

Earlier in May, similar regulatory hurdles emerged in Indonesia and Kenya, where operations were suspended due to concerns over data privacy violations. These developments could hinder Worldcoin’s global expansion, particularly in emerging markets where biometric adoption is high but regulatory frameworks are evolving. The implications extend to broader blockchain identity projects, potentially increasing compliance costs and slowing innovation in decentralized verification systems. As institutional investments like Multicoin Capital’s continue amid these headwinds, the project’s ability to navigate regulatory landscapes will be crucial for realizing its vision of universal digital identity. How do you see such institutional bets influencing the trajectory of biometric crypto projects facing global scrutiny?