Many users on social media have been running decentralized cryptocurrency dYdX through the ID process to sign up and receive a $25 bonus.
In a blog post on Wednesday, dYdX announced that new users who deposit 500 USD Coin (USDC) for their first transaction can receive a 25 USDC bonus promotion, as long as they are willing to do a “life check.” According to the exchange, the verification process accesses the user’s webcam and “compares your image with another account used on DYdX.”
Although the donation is entirely voluntary, many on Twitter have suggested that the checks are tantamount to an invasion of privacy. Defy Watch founder Chris Blake speculated that DIDX and other platforms could offer greater incentives for customers to provide more information in return for “bribing users to scan their faces and masquerading as ‘advertisements’.”
“What DYdX is doing right now is just wrong.” he said. Blake. They are misleading users with the aim. You know that every face scan you collect is from an innocent person. Criminal doesn’t scan face up but can still use dYdX. They are bribing new users to give up their privacy just to satisfy regulators.
I have praised you in the past. @dYdX To be honest about the central parts.
But unfortunately, that changes today.
They are bribing users to get their faces scanned and pretending it’s a “promotion”.
This has long been predicted to happen in DeFi, and it has just begun. https://t.co/G0rJThHYhS
— Chris Blake (@ChrisBlec) September 1, 2022
As reported by dYdX – “Evaluating many solutions” – facial scanning was the solution that offered “the best UX for our users to show that they are a person without revealing their full identity”. In a statement to Cointelegraph, a dYdX spokesperson said the promotion does not require users to “provide personal information” and that the image verification is intended to “prevent fraud.” Mark Boiron, Polygon’s Chief Legal Officer and former Chief Legal Officer at DIDX, also He said he deserved it. Liveness checks are “incomplete and ineffective without being combined with other requirements,” he said on Twitter.
However, Blec He said he deserved it. The Exchange may be acting on behalf of regulators:
“It’s absurd to think that a crypto exchange is paying people to scan their faces for any reason *other than some sort of regulatory compliance, or at least to test the way they plan to expand in the future.
“Regardless of the reason, this is a terrible idea and you need to reverse this quickly.” he said. Adam Cochran, General Partner at Cinemahain Ventures. There is no acceptable reason to collect user biometrics. You’re better off quitting the incentive program entirely.
Related: dYdX confirms banning (and unbanning) some of the accounts suggested in the Tornado Cash controversy.
DIDX spokesperson from the Twitter account he said. The endorsement had “zero to do with rules” and was “a product that simply lets you know you’re special.” But the platform doesn’t seem to have responded to concerns about what kind of service it provides the facial scans and how the data is stored.