Decentralised cryptocurrency derivatives exchange dYdX has brought an end to its short-period $25 first deposit bonus promotion during criticism raised over its facial recognition requirements for new users, as reported by Cointelegraph.
According to Cointelegraph, the exchange gave the reason as increasing demand for its short-lived promotional campaign, which ended soon. The launched promotion offered new users a $25 bonus if they deposited $500 or more into the platform. 24 hours after the announcement, dYdX tweeted that it would put an end to the campaign due to increasing demand after onboarding thousands of new users.
On the basis of information by Cointelegraph, the team behind DEX didn’t emphasise on how long the promotion campaign would be active during the initial announcement but mentioned about underestimating the total amount of interest garnered by campaign. dYdX made no comments on the community pushback through a tweet but doubled down on its use of the facial recognition software. The tweet also stated that it was only used to get assurity on users who weren’t doubling up on accounts. While some of the community members are reportedly not believing in it, other believe the cancellation happened as a result of contention and also due to the platform making use of such tools.
Moreover, Cointelegraph noted that Yearn.finance contributor Adam Cochran made a tweet to his 153,100 followers that despite being an advocate for dYdX previously, he will be making a move off the platform and sell his DYDX tokens until changes happen.
“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 decentralised perps market but I am worried about this behavior and think a company culture that prioritizes growth over users is dangerous,” Cochran said.
(With insights from Cointelegraph)