decentralized crypto derivatives exchange has announced the end of its short-lived and controversial $25 first deposit bonus promotion, following a wave of criticism over its face recognition requirements for prospective users.
On the other hand, the exchange quoted growing demands as the reason for its brief promotional campaign, which concluded on September 1 with immediate effect.
The promotion in question began on August 31 and offered new users a $25 reward if they deposited $500 or more into the platform.
The only catch was that they were required to agree to a "liveness check" via webcam to confirm their identity, which upset some community members.
After allegedly attracting and recruiting thousands of new users, dYdX tweeted about 24 hours later that it would end the campaign "due to extremely overwhelming demand."
During the initial announcement, the DEX team did not specify how long the promotional campaign would last. Still, it stated that they had vastly underestimated the amount of attention the campaign generated.
The platform did not mention the community backlash in its most recent tweet but doubled down on its use of facial recognition software in an earlier post, claiming that it was only used to ensure users weren't claiming the bonus on multiple accounts.
Some in the community are skeptical, believing that the cancellation was largely due to the dispute, while others have voiced concerns about the platform's use of such tools in the first place.
Yearn Finance contributor Adam Cochran announced on Twitter to his 153,100 followers that, despite being a long-time supporter of dYdX, he will be leaving the platform and auctioning his DYDX tokens until he sees meaningful changes there.
"dYdX doubles down on his claim that this is acceptable, claiming that it is only if you want the incentive programs. Your data privacy is a commodity in their eyes, and an acceptable risk if they get growth."
"I'm optimistic about a decentralized perps market, but I'm concerned about this behavior, and I believe a company culture that prioritizes growth over users is risky," he added.