Sam Altman's World start-up raises $52.5M via crypto sale
What's the story
World, the online verification start-up co-founded by OpenAI's Sam Altman, has raised $52.5 million through a crypto token sale. The funds were raised from strategic investors who participated in a 12-month lockup sale of World's token, WLD. The yearlong lockup period is intended to keep asset buyers from selling or trading their tokens for a certain period of time.
Fund utilization
Funds will go to World Foundation
The funds from the token sale will be directed to the World Foundation, an exempted limited guarantee foundation based in the Cayman Islands.
The foundation was created to oversee the expansion of World's network.
Pantera Capital, a venture capital firm focused on digital assets, was the lead buyer in this sale.
Other companies involved include Eightco Holdings, Bain Capital Crypto, Susquehanna Crypto, and Selini Capital, among others.
Business model
World's business focuses on online verification
World is a unique business that focuses on online verification. It sells access to what it calls "proof of human" tools.
The idea is that as bots and AI create much of the content online, it will be increasingly important to know who is real and who isn't.
World's goal is to popularize its World ID, an anonymous digital marker that verifies whether a human or an AI agent is behind a particular account.
Verification process
To get verified World ID, users have to scan eyes
To get a verified World ID, users have to scan their eyes with an Orb, a metallic ball that converts a user's iris into a distinct cryptographic identifier.
World's Orbs are located at its offices and have also been deployed at partner stores around the world.
The project started as a more overtly crypto-based experiment under the name "Worldcoin," which is also the name of the crypto asset involved in this sale.
History
Rebranded to World amid backlash against crypto
Users can trade or hold the token through World's app, which also serves as a custodial wallet.
The company later rebranded to World amid a broader backlash against the crypto industry.
In April, it launched a new version of its app and announced partnerships with companies like Tinder, Zoom, and Docusign.
However, despite its global ambitions, World has struggled to scale its business or convince consumers to care much about its mission.