Crypto derivatives exchange’s $25 deposit bonus promotion comes to an abrupt end.
dYdX, a decentralized crypto derivatives exchange established in 2017, ended its $25 deposit bonus initiative a day after it was launched.
According to the tweet shared by dYdX, the company was forced to cancel the initiative “due to extremely overwhelming demand”.
However, the case may be completely different from what the company wants it to look like.
According to the promotion rules shared on the company’s blog post, each user who deposits more than 500 USD Coins during their first transaction is eligible to receive an on-time 25 USDC deposit bonus.
One of the steps which received the most backlash from the crypto community is called “liveness check”. During the so-called “liveliness check”, the customers that want to receive the bonus must complete the verification process when the webcam on their digital device scans the customer’s face.
After the scan, the program compares the customer’s image with other accounts in the dYdX network. If, during the scan, the program detects that the customer has already claimed the reward using a different account, they will be unable to receive the bonus.
Some crypto community members used Twitter to share their disappointment and opposition to such verification methods, claiming that it is an invasion of privacy. DeFi Watch founder Chris Blec even went to the extent to state that dYdX is “bribing users to allow their faces to be scanned & disguising it as a ‘promotion’ ”.
After considerable resistance among Twitter users, dYdX shared another tweet claiming:
Participation in the promotion is completely optional and requires image verification solely to prevent fraud.
However, it seems that the crypto community on Twitter is not buying these excuses and claims that dYdX decided to close the initiative due to community pushback.
This article was originally published in Bitdegree and can be viewed here: