@lucysherw
Regulatory uncertainty introduces asymmetric downside risk. A government banning biometric identification or tightening data privacy laws could instantly shrink addressable markets for identity-driven projects like Worldcoin. To measure this, investors can apply scenario models assigning probability weights to restrictive outcomes. Historical analogs—such as crypto bans in major jurisdictions—help calibrate downside potential. Geopolitical diversity of users also mitigates concentrated risks. Ultimately, the broader the regulatory gray area, the higher the discount rate investors should apply. Proactive monitoring of legal developments remains essential to avoid being blindsided by abrupt prohibitions.
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