$120 Million Lead Investor is Sought by ChatGPT Creator Sam Altman's Eyeball-Scanning Crypto Startup

Sam Altman, the cofounder of ChatGPT and co-founder of Worldcoin, has been in talks to secure a new round of funding for his controversial cryptocurrency startup, Worldcoin.

In a report by The Block, citing a source familiar with the matter, the project is looking to raise up to $120 million at a $3 billion valuation. Several deep-pocketed investors such as sovereign wealth funds are interested in investing in this crypto unicorn, according to the report.

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It is expected that the financing round will take the form of a sale of equity plus token warrants, according to people familiar with the matter.

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Worldcoin was founded in 2020 with the goal of giving crypto to everyone on earth by scanning the iris of every living human being. The reason for this is that the company needs to identify users in order to distribute its tokens in a fair manner. Last April, BuzzFeed reported that a company called WorldCoin has reportedly scanned the eyes of nearly half a million people around the world.

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The tactics Worldcoin employs have been criticized over privacy concerns raised by a fledgling startup that is gathering personal biometric data from large swaths of people, which may be harmful to their privacy. According to reports, Worldcoin has suffered a series of setbacks in the past few months, including delays in its public launch, the suspension of operations in numerous countries, and a large number of customer complaints.

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Worldcoin CEO Alex Blania told Trade Algo in March 2022 that these obstacles stem from a startup that is still experimenting.

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As Blania told the news outlet, "You're still talking to a Series A company, not an Uber," he added. “It is true that things are not perfect at the moment."

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With the backing of well-known investors like Andreessen Horowitz, Coinbase's venture capital arm, and LinkedIn co-founder Reid Hoffman, Worldcoin was able to raise a Series A round last year.