Identity赛道独角兽遭质疑：Worldcoin faces multiple challenges, Humanity founder exposed for failed entrepreneurial history
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Identity赛道独角兽遭质疑：Worldcoin faces multiple challenges, Humanity founder exposed for failed entrepreneurial history
Newly-minted unicorn Humanity Protocol gets off to a rocky start, while Worldcoin is mired in reputational and operational challenges—two billion-dollar market cap leaders in the DID sector now face a new test.
Navigating Web3 tides with focused insightsBy Nancy, PANews
Recently, blockchain identity platform Humanity Protocol announced a $30 million funding round at a $1 billion valuation. However, its CEO was subsequently exposed for previously founding unicorn startup Tink Labs, which later went bankrupt, causing hundreds of millions of dollars in investor losses. Meanwhile, Worldcoin, another major player in the DID sector, is facing controversy over upcoming large-scale token unlocks, global regulatory setbacks, and the fading influence of OpenAI’s endorsement.
With Humanity Protocol off to a rocky start and Worldcoin struggling with reputation and business development challenges, these two $1 billion-valued DID unicorns are now confronting significant new tests.
DID Protocol Using Palm Recognition Faces Scrutiny Over CEO’s Prior Bankrupt Unicorn
Humanity Protocol is widely seen as a direct competitor to Worldcoin within the same sector.
Launched in 2023 as a Polygon CDK-based identity system, Humanity Protocol is co-developed by Human Institute, Animoca Brands, and Polygon Labs. It aims to provide an accessible and non-intrusive method for proof-of-humanity in Web3 applications. The protocol plans to launch its testnet in Q2 this year and already has a waitlist exceeding 510,000 users.
In terms of biometric technology, unlike Worldcoin's iris scanning, Humanity Protocol uses palm print recognition—a method considered less invasive. However, iris recognition offers advantages such as uniqueness, stability, and non-replicability, making it more secure overall compared to other biometrics. That said, iris recognition also demands higher accuracy and stability, resulting in greater technical complexity and R&D costs.
Like Worldcoin, Humanity Protocol employs zero-knowledge proofs to ensure user data privacy and ownership of digital identities. On the funding front, while Worldcoin achieved its $1 billion valuation during Series A financing after multiple high-profile rounds, Humanity Protocol has also completed several funding stages. Officially, Humanity Protocol has secured a $30 million seed round led by Kingsway Capital, with participation from over 20 institutions including Animoca Brands, Blockchain.com, and Shima Capital. Additionally, it raised approximately $1.5 million from a group of KOLs, reportedly at a $60 million valuation for that round, according to PANews.
Moreover, like Worldcoin, Humanity Protocol will be easily accessible via smartphones. The project will release a mobile app using smartphone cameras to scan palm prints for identity verification, later adding a second layer of security using palm vein patterns captured by small infrared cameras. This system could eventually be used in financial KYC processes or even to access physical spaces like hotels and office buildings through palm authentication. Humanity Protocol also plans to issue a native token to cover verification fees.
Commenting on the project, Polygon co-founder Sandeep Nailwal stated that Humanity Protocol not only effectively resists Sybil attacks but can also natively integrate verifiable credentials into decentralized validator node networks—laying the foundation for broader blockchain and real-world applications.
Following heightened market attention due to its high valuation, Humanity Protocol CEO Terence Kwok (Guo Songxian) was recently reported by foreign media outlet Protos to have nearly driven his previous smartphone company—once valued at $1.5 billion—to bankruptcy, burning through $170 million in investor funds.
Terence Kwok founded Hong Kong-based Tink Labs in 2012. At its peak, the company had 12 million global users and received investments from FIH Mobile (a Foxconn Technology Group subsidiary), Innovation Works led by Kai-Fu Lee, and Meitu Chairman Cai Wensheng. Tink Labs provided smartphones to hotel guests during their stay, aiming to offer an alternative to roaming charges and improve guest experience, while monetizing collected customer preference data. Interestingly, behind Tink Labs’ heavyweight investors, Terence Kwok’s father, Kwok Tak-shing, was believed to be a key factor—he was a former star private banker at Goldman Sachs, serving ultra-high-net-worth clients such as Lee Shau Kee and Robert Kuok.
According to the Financial Times, aggressive expansion strategies, cheaper and more widespread roaming options, and hotels’ reluctance to pay for free phones contributed to mounting losses—nearly $200 million in 2017 and 2018 alone—leading to liquidity crises. A former employee revealed that SoftBank, one of Tink Labs’ investors, grew concerned about the company “transferring funds from its Japanese joint venture to other regions to sustain operations,” forcing the abrupt cancellation of a major project. Kwok allegedly struggled to pay employees and contractors, leading to mass layoffs before officially shutting down Tink Labs on August 1. In January 2020, Tink Labs’ European division entered liquidation, followed by formal bankruptcy proceedings.
The former head of HR operations at Tink Labs commented, “I never thought it would last, but I didn’t expect it to shut down so quickly. Kwok only cared about ‘making money.’” As Fortune Insight previously reported, Terence Kwok once said during Tink Labs’ early days, “If entrepreneurship fails, you can always go back to school—it’s the lowest opportunity cost. Starting a business for three months is like earning an MBA.”
Worldcoin Faces Major Token Unlock Amid Regulatory Investigations
As Humanity Protocol sparks market debate, Worldcoin finds itself embroiled in controversies surrounding token unlocks, regulatory scrutiny, and alleged insider profit-taking.
Recent analysis by DeFi researcher @DefiSquared on X suggests that Worldcoin could become the largest wealth transfer event of this cycle. The project suffers from severe inflation issues—the fully diluted market cap of its WLD token reaches $60 billion—while daily depreciation stands at 0.6% due to ongoing token issuance for distribution and operator claims. Moreover, WLD unlock volumes are set to surge in the coming months, potentially triggering massive sell-offs.
According to @DefiSquared, once VC and team tokens begin unlocking, WLD supply will increase by 4% daily. Data from Token Unlocks shows that starting July 24, WLD will face daily sell pressure equivalent to $31.5 million (based on prices as of May 16).
Additionally, Worldcoin recently disclosed in a blog post that World Assets, the foundation subsidiary responsible for token issuance, plans to conduct private sales of 500,000 to 1.5 million WLD tokens per week over the next six months. At current valuations, this could amount to up to $179 million. @DefiSquared pointed out that these tokens represent 16.7% of the existing circulating supply (calculated based on 210 million in circulation as of May 16), are being sold at discounted rates, and come from the portion of the WLD supply labeled “community”—yet are being sold to counterparties for the benefit of the foundation.
“Worldcoin’s tokenomics were predatory by design, built to enrich the team and early investors. Last December, the foundation deliberately terminated market maker agreements (note: Worldcoin announced on December 15, 2023, the termination of contracts with five market makers), allowing prices to inflate artificially under low liquidity,” @DefiSquared noted. According to the latest research from CoinGecko, WLD ranks among the four lowest-circulating crypto projects within the top 300 by market cap. This manipulative model of low circulation and high valuation directly benefits insiders, who can hedge their locked allocations via contracts and OTC deals before unlocking.
Furthermore, @DefiSquared emphasized that most retail investors may not even realize Sam Altman (OpenAI CEO) is no longer actively involved with Worldcoin, nor that the project has any official connection to OpenAI. Bloomberg reported in April that Worldcoin was then seeking partnerships with tech giants like OpenAI.
Notably, Worldcoin is currently facing regulatory bans or investigations across multiple jurisdictions—including Spain, Portugal, South Korea, and Hong Kong—over user data privacy concerns. In response, key supporters of Worldcoin have engaged in meetings with government officials to improve relations. The team has also open-sourced its iris recognition inference system to enhance transparency, introduced a new personal data self-hosting policy, recently open-sourced a new SMPC system, and securely deleted old iris code—all aimed at improving biometric data security. Similarly, Humanity Protocol may also face regulatory scrutiny regarding user data collection practices.
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