Crypto Derivatives Exchange dYdX Ends First Deposit Promo

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  • dYdX cancels its first deposit promo.
  • This comes after recent criticism over its facial recognition feature.
  • dYdX was also criticized for banning accounts tied to Tornado Cash.

The decentralized cryptocurrency derivatives exchange dYdX has announced that its first deposit bonus promo worth $25 will no longer be available. The swift cancellation might be a response to the significant backlash received from the community in response to the demand for a face recognition scan in order to be eligible for the deposit bonus.

However, the exchange only provided the explanation that there was “overwhelming demand” for the termination of the feature. The feature, which is called Liveness Check, was not mandatory, but it has been included in order to stop fraudulent individuals from taking advantage of the promos.

In their words: “If you have successfully completed the liveness check with a different account, you will be unable to successfully complete the liveness check again. Given that your Ethereum address functions as your account on dYdX, it is trivial to make more than one account. As such, it is quite difficult for a dApp to offer promotions without being Sybil-attacked.”

dYdX is a decentralized exchange (DEX) that allows users to trade in over 35 different cryptocurrencies. Some examples of these cryptocurrencies are Bitcoin, Ethereum, Dogecoin, and Cardano.

In order to achieve decentralization, the majority of dYdX exchanges are based on trustless protocols that allow for the public and unrestricted extension of their functionality.

In recent days, the decentralized derivatives market has also been under criticism for suspending several accounts tied to Tornado Cash in response to a sanction issued by the Treasury Department. After a few days, it backtracked on the blocks. dYdX published an update on its blog in which it confirmed that its compliance supplier had reported certain accounts and that some of those accounts had been unblocked.

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