Crypto users push back on dYdX promotion requiring facial analysis

"Regardless of the cause, this is an absolutely horrible idea and you should backtrack immediately," said Adam Cochran, General Partner of Cinneamhain Ventures.

Many users on social media blasted decentralized exchange dYdX over identity verification process to receive $25 signup and deposit bonus.

In a blog post on Wednesday, dYdX announced that new users who deposit 500 USD in coins (USDC) for their first trades could receive a bonus promotion of 25 USDC, provided they agree to take a "test of liveliness". According to the exchange, the verification process accessed a user's webcam and "compare if your image has been used with another account on dYdX".

While the giveaway was completely voluntary, many on Twitter suggested the checks amounted to privacy breaches. DeFi Watch founder Chris Blec accused the exchange of "bribing users to allow their face to be scanned and disguising it as a 'promotion,'" speculating that dYdX and other platforms -forms could offer greater incentives in exchange for customers giving up more information.

"What dYdX is doing now is just plain wrong," Blec said. "They deceive users of intent. They know that every face scan they collect is from an innocent person. A criminal won't scan the face but can still use dYdX. They bribe new users to give up their privacy just to satisfy regulators."

In the past I've praised @dYdX for being honest about his centralized games.

Unfortunately, that changes today.

They bribe users to allow their face to be scanned and disguise it as a "promo...