Sam Altman’s startup, Tools for Humanity, is aiming to reach one billion users with its Worldcoin project, but it’s still less than 2% of the way there. The company, backed by major investors like Andreessen Horowitz, Bain Capital, and Khosla Ventures, has raised $240 million and is valued at around $2.5 billion. At the heart of the initiative is the Orb—a sleek, volleyball-sized device that scans users’ irises to create a digital "World ID," a form of human verification in the age of AI. Once verified, users receive Worldcoin, a cryptocurrency currently worth about 80 cents, and gain access to a suite of digital tools, including a messaging app, a digital wallet, and a network of mini apps. Despite the ambitious vision, the company faces significant challenges. It has verified roughly 17.5 million people, far short of its billion-user goal. Regulatory scrutiny is mounting globally, with operations halted or investigated in countries including Spain, India, Indonesia, the Philippines, Colombia, and Thailand. German authorities have raised concerns about the security of its biometric data, while China’s Ministry of State Security has warned that collecting iris data for crypto could pose national security risks. In some regions, the rollout has been controversial. In Mexico, a former operations head said his team invested around $5,400 of their own money to launch seven Orb locations, with limited financial support from Tools for Humanity. In Kenya, a high court ruled the project illegal and ordered the deletion of all biometric data. In Argentina, unaffiliated groups have bused people to scanning sites, sometimes taking their phones before and after the process, raising concerns about exploitation and data misuse. Former employees and industry experts question the project’s long-term viability. Nick Maynard of Juniper Research said the company lacks a clear, compelling use case beyond distributing cryptocurrency. “There needs to be a real purpose to exist, and that isn’t super clear as of yet,” he said. Others point out that the business model relies heavily on continued venture capital, as the company doesn’t charge users and has not yet established a sustainable revenue stream. While it has introduced World ID fees and a community operator program, these are unlikely to cover costs on their own. Critics also question the value of Worldcoin, which has a market cap of just a fraction of Bitcoin’s. Nikhil Bhatia, a USC finance professor, called it an “experimental or a fad” rather than a serious asset. Martha Bennett of Forrester said she struggles to see the project as a viable business, noting that the only incentives for users are free crypto and for operators are financial gain from scanning. The company’s early strategy in many countries involved rapid expansion with little regard for local regulations, a pattern reminiscent of Uber’s early days. In Latin America and parts of Africa, many users appear to be drawn by the promise of quick cash, often exchanging Worldcoin for local currency immediately. A former employee in Germany said many of the verified users were short-term, one-time participants who deleted the app afterward. While Tools for Humanity claims to work with regulators and ensure compliance, the repeated legal and ethical challenges suggest a tough road ahead. The project’s success may depend not just on technology, but on its ability to build trust, demonstrate real-world value, and navigate a complex global regulatory landscape. For now, the dream of a billion human-verified users remains far from reality.