Cryptocurrency

Crypto community lambasts dydx’s new facial verification requirement

Decentralized Exchange dYdX (DYDX) Discontinued Its new $25 deposit promotion cites “overwhelming demand” and denies claims that DEXs now require user verification.

DEX drew the ire of the cryptocurrency community after requiring participants of its $25 deposit bonus to perform a “liveness check” that scanned users’ faces.

According to dYdX, the facial recognition request is meant to prevent fraud and does not imply “a change in ideological beliefs regarding accessibility, transparency, mutability, or censorship.”

Crypto Community Attacks dYdX

Many within the crypto community believe that the decision to halt the promotion was due to the initial backlash the exchange received.

Some crypto industry stakeholders have responded negatively to dYdX’s request, with some suggesting that the exchange is acting in accordance with regulatory instructions.

1 user explained A $25 bonus is “an insultingly small amount that people pay to expose themselves.”

dYdX Growth Executive Corey Miller said, “There is no good decentralized identity solution that exists today,” adding that there will always be “trade-offs” if DEXs want to be “as big as CEX.” .

On the other hand, Adams Cochran said DEX “has a legal basis to justify some blocks, but collecting biometrics is never acceptable.”

Others shared a similar view, describing it as a bad idea.The paranoia in the cryptocurrency community has arisen in light of recent sanctions against Tornado Cash by the US Treasury Department.

DEX’s native token, DYDX, is up 1.5% over the past 24 hours, trading at $1.53 at the time of writing.

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