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The Decline of 23andMe: What Will Happen to the DNA of Millions of People?
Just three years ago, 23andMe, the leading DNA testing company, was experiencing tremendous success, with a stock market value higher than giants like Apple. However, today the company is facing an economic crisis, with its stock price plummeting and casting doubt on its future in the market. This situation is even more concerning due to the vast DNA database 23andMe has accumulated over the years, raising questions about the security and use of this confidential information.
The Rise and Fall of 23andMe
At its peak, 23andMe was a global phenomenon. People from all over the world sent in saliva samples to learn about their ancestry, genetic health, and potential family connections. Celebrities like Snoop Dogg, Oprah Winfrey, and Eva Longoria also joined the service, further boosting its visibility.
At one point, its stock price reached $321 per share. But today, that value has fallen to below $5, and the company is now worth just 2% of what it was at its peak.
The Problems that Undermined Success
According to Dimitris Andriosopoulos, a professor at the University of Strathclyde, the main problem for 23andMe lies in its business model.
After paying for a DNA report, customers had little incentive to return, which reduced the flow of recurring revenue.
Additionally, the company's plans to monetize its genetic database through pharmaceutical research took longer than expected. Developing new drugs is a long and costly process, delaying the profitability of those projects.
This led Andriosopoulos to a stark conclusion: "It is very unlikely that 23andMe will survive as it is." The company has also undergone leadership changes, with the resignation of its board of directors in the summer, leaving Anne Wojcicki, co-founder and current CEO, as the only remaining original figure in the team.
The Uncertainty of the Future
Rumors about the possible sale or disappearance of 23andMe persist. Rival company Ancestry has even urged U.S. regulatory authorities to intervene if the company is sold. However, 23andMe has dismissed these speculations, stating that Wojcicki intends to privatize the company and is not considering acquisition offers.
The uncertainty remains high, and while some suggest that the company might survive for some time, the long-term prospects are not promising.
The Value of DNA
What makes 23andMe particularly concerning is not just its market decline but the enormous DNA database it has gathered. Millions of people have entrusted the company with their genetic information, creating an invaluable but also potentially vulnerable archive.
The security of this data has become a central issue. As privacy expert Carissa Veliz points out, when someone decides to send their DNA to 23andMe, they are not only granting access to their own genetic information but also to that of their close family members, who did not give consent.
This could have far-reaching implications if the data were to fall into the wrong hands.
David Stillwell, a professor of computational social sciences at the University of Cambridge, highlights that genetic data is especially sensitive. If a bank account is hacked, a new account can be opened, but genetic data is irreplaceable.
Moreover, a user’s relatives share a significant portion of their DNA, meaning that an attack on one individual’s data could reveal genetic information about many other people.
How is Data Protected?
23andMe has insisted that it takes the protection of user data seriously, assuring that it complies with privacy laws and that any future change of ownership must respect the privacy agreements already in place. In the UK, for example, GDPR law provides an additional layer of protection. Despite this, experts point out that, ultimately, the security of the data depends on the company’s internal policies and its ability to withstand cyberattacks.
In fact, 23andMe suffered a hack last year, which raised further concerns about the security of the information stored on its servers.
Is Legal Protection Enough?
Although there are regulations protecting user information, such as the GDPR in Europe, Veliz argues that current legislation is still not sufficient to guarantee full protection of personal data. "Until the trade of personal data is banned, we won’t be adequately protected," concludes Veliz, suggesting that companies should be more transparent and limit the use of the data they collect.
Conclusion
The fall of 23andMe serves as a warning about the risks associated with handling highly sensitive personal data. While the company remains committed to its users' privacy, its future is still uncertain. The protection of genetic data is now more crucial than ever, and users must be aware of the risks involved in entrusting such information to a company that, like any other, could face economic difficulties or fall victim to a cyberattack.
Source: BBC.
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