Kaiko estimates AI-token activity amid Worldcoin hype

In August, the trading volume of AI tokens reached $870 million, up from $570 million a month earlier, according to Kaiko analysts.

?Despite #Worldcoin ‘s controversial launch at the end of July, the weekly trade volume for AI-affiliated tokens remained subdued in August. pic.twitter.com/gq8iEgNTPG

— Kaiko (@KaikoData) September 9, 2023

The figure surpassed $7 billion in January and has remained stagnant since.

The launch of the Worldcoin (WLD) project did not fundamentally change the situation, according to analysts.

Analysts attributed the waning enthusiasm for the sector to a shift in global risk appetite.

According to their calculations, the aggregate open interest in the five largest AI tokens, excluding WLD, fell from $170 million in February to $60 million in August.

Worldcoin announced the official launch on 24 July.

The project’s main product — the World ID protocol — is based on zero-knowledge proofs. It is a mobile tool that enables people to verify their identity via a retina scan or a phone number.

Worldcoin has drawn the attention of regulators in several countries. Regulators have questioned whether the collection and storage of citizens’ personal data complied with applicable laws in the United Kingdom, France, Germany, and Argentina.

In Kenya, the project’s operations have been suspended, and raids were conducted at the company’s warehouses. A special committee has been formed to study the matter in detail.