The prompt cancellation comes after strong community pushback relating
to the requirement of a facial recognition scan in order to receive the
deposit bonus.
Decentralized crypto derivatives exchange dYdX says it has ended its
short-lived and contentious $25 first deposit bonus promo amid a wave of
backlash over its facial recognition requirements for new users.
The
exchange, however, simply cited “overwhelming demand” as the reason for
its short-lived promotional campaign, which ended on Thursday
“effective immediately.”
The promo in question launched on Wednesday and it offered new users a $25 bonus if they deposited $500 or more into the platform.
The
only catch was that they had to agree to do a “liveness check” via
webcam to verify their identity, which didn’t go down well with certain
sections of the community.
Around 24 hours later, dYdX tweeted
that it would end the campaign “due to extremely overwhelming demand”
after purportedly onboarding thousands of new users.
The team behind the DEX
didn’t outline how long the promo campaign would last during the
initial announcement but stated that it “truly underestimated the amount
of interest the campaign garnered.”
Related: Are non-KYC crypto exchanges as safe as their KYC-compliant peers?
dYdX,
notably, made no mention of the community pushback in the most recent
tweet but doubled down on its use of the facial recognition software in
an earlier post, stating that it was only used to make sure users
weren’t doubling up on accounts to claim the bonus.
Some in the
community aren’t buying it, with some believing the cancellation was
largely a result of the contention, while others have expressed concerns
with the platform using such tools in the first place.
Yearn.finance contributor Adam Cochran tweeted
to his 153,100 followers that despite being a major advocate for dYdX
in the past, he will be moving off of the platform and selling his DYDX
tokens until he sees “meaningful changes there:”
“dYdX
doubles down on claiming that this is ok by saying it’s just if you want
the reward program. In their eyes your data privacy is a commodity and
an acceptable risk if they get growth.”
“I’m hopeful for a
decentralized perps market but I am worried about this behavior and
think a company culture that prioritizes growth over users is
dangerous,” he added.
source link : https://cointelegraph.com/news/dydx-ends-contentious-promo-claiming-overwhelming-demand
