Humanity Protocol: The Controversies and Concerns Behind the $1.1 Billion Valuation

Humanity Protocol, as a highly regarded Web3 identity recognition project, has attracted the attention of many investors with its palm print recognition technology and anti-witchcraft system. However, with the rapid development of the project, a series of controversies and doubts have also emerged.

The project was established in 2023 and completed three rounds of financing in a short period, with a total amount exceeding $50 million and a valuation reaching an astonishing $1.1 billion. Many well-known institutions such as Animoca Brands, Blockchain.com, and Polygon have participated. The project's foundation has also brought together heavyweight figures in the industry, including the chairman of Animoca Brands and the founder of an international blockchain consulting company.

In June of this year, Humanity launched an Android version that supports palm print scanning verification, with the number of registered users exceeding 8 million. Subsequently, a well-known trading platform announced that it would list the Humanity Protocol (H) token. However, with the start of the airdrop activity, some issues behind the project were gradually revealed.

Some users have revealed on social media that the Humanity Protocol may be a "domestic project shell" and that there are images of a certain access control manufacturer from Shenzhen in the application code. Furthermore, individuals in the cryptocurrency industry have disclosed that behind this access control manufacturer is an outsourcing company in Shanghai that specializes in providing comprehensive outsourcing services for identity verification systems.

In response to these doubts, Humanity's founder Terence Kwok stated that the company involved is an early partner and that the related materials are "historical leftovers" from the packaging process. He emphasized that the company's founder was a former executive at Tencent and has also collaborated with UnionPay, possessing rich experience in the field of biometrics. However, this explanation did not completely alleviate the community's concerns.

In addition to the controversy over technical outsourcing, Humanity also faces questions regarding security issues. Security experts have pointed out that there are serious security risks during the testnet phase, where user private keys may be stored in plain text in the browser.

The past experiences of founder Terence Kwok have also attracted attention. According to reports, a smartphone company he once operated nearly went bankrupt due to aggressive expansion, burning through over $170 million in investment funds. This experience has raised concerns among some about the future development of Humanity.

Recently, the Humanity Protocol launched its first "Proof of Humanity" airdrop event, but the results have left many users disappointed. Some spent a lot of time completing tasks, only to receive a small number of tokens in the end; some long-time community volunteers received no airdrops at all. Meanwhile, some addresses with no apparent contributions received a large number of tokens. This has raised questions in the community about the fairness of the project.

In response to the airdrop controversy, the founder stated that they are seriously addressing the related complaints. However, the community is still waiting for a more transparent and responsible response.

The development path of the Humanity Protocol is fraught with challenges. It needs to prove itself in multiple areas such as technological innovation, security, and fairness in order to truly realize its grand vision. Regardless, this case serves as a reminder that in the Web3 world, it is essential to remain rational and cautious, and not to be misled by superficial glamour.