Popular decentralized exchange dYdX has scrapped a recent $25 deposit promotion after being scrutinized for asking participants to conduct a "liveness check," which identified customers using their webcams.
- In an announcement on Twitter, dYdX cited "extremely overwhelming demand" as the reason why the promotion was removed.
- A liveness check scans a user's image and compares it with a database to see if the image has been used by another account.
- Trade volume on dYdX has fallen by 35.07% over the past 24 hours, according to Nomics.
- In 2018, a decentralized exchange called IDEX, which at the time was the most popular following the collapse of EtherDelta, implemented know-your-customer rules in order to comply with sanctions and money laundering laws. The change resulted in a severe drop in activity. The exchange now struggles to reach $10 million in daily volume.
- San Francisco-based dYdX was founded in 2017 and has since attracted investment from the likes of Paradigm, a16z, Polychain and the now-defunct hedge fund Three Arrows Capital.
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