Webcam checks have drawn criticism for DYdX

Published on:

Last Updated on September 3, 2022 by Bitfinsider

Social media users have criticized decentralized exchange dYdX for its identification requirement, which asks users to confirm their identities using a webcam.

Users would only be qualified to benefit from a promotion the platform is running after identification.

A bonus of 25 USD Coins will be given to new customers who placed $500 USD Coin (USDC) for their first transaction on the exchange, it was revealed in a blog post on Wednesday.

However, users had to perform a “liveness check” to be qualified for the incentive. The exchange stated that in order to “compare if your image is related with another account on dYdX,” the verification process would need access to the user’s webcam.

Users on Twitter criticized the exchange and its promotional offer, calling it a clear invasion of user privacy, despite the fact that the giveaway has been advertised as being completely voluntary. Chris Blec, the creator of DeFi Watch, claimed that dYdX was attempting to pay users to consent to having their faces scanned while pretending to be running a promotion. Blec made the assumption that dYdX and other platforms might provide users with greater incentives in order to get them to divulge more information.

For its side, dYdX claimed that the “liveness check” was only a simple solution that provided consumers with the optimum UX for indicating that they are one person while remaining anonymous. According to a dYdX spokesman, users were not required to provide any personal information for the campaign, and the image verification was solely implemented as a safeguard against fraud. According to Marc Boiron, a former chief legal officer at dYdX, liveness checks are useless unless they are used in conjunction with other standards.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked.

To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor


Are you new to investing and would like to find out more about investments and cryptocurrency? If you know nothing about a topic and want to become an expert on it, one fool proof way to start is to read good books about the topic.

If you read one book about a topic, you will be able to share knowledge or discuss the topic at an elementary level with almost everyone.

Read three books and you will likely know more than the majority of people and will be able to discuss the topic at an intermediate to expert level.

  1. The Intelligent Investor by Benjamin Graham
  2. Crypto Investing Guide: How to Invest in Bitcoin, DeFi, NFTs and More by Ian Balina
  3. The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology That Powers Them by Antony Lewis

Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.

Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

Related