The expert criticized dydx for collecting personal data of new users

The expert criticized dydx for collecting personal data of new users

Expert criticized dydx for collecting personal data of new users

Cinneamhain Ventures partner Adam Cochran expressed his disappointment with decentralized derivatives exchange dydx's decision to collect and store biometric data of new users as part of a promotion.

The platform promised 25 USDC to new users who deposited at least 500 USDC and were verified by creating a webcam image. The promotion was voluntary. 

Dydx explained the initiative by the need to eliminate the need to create additional accounts that impede marketing campaigns.

Cochran noted that the collection of biometric data is not acceptable, even if platforms have legal grounds to justify account bans.

The following day, dydx canceled the promotion, citing underestimated interest in the campaign. According to her, “thousands of new users” took advantage of the offer.

< p> Cochran doubted that thousands of users really expressed interest, and did not criticize the platform. He expressed the hope that other industry participants will not engage in the abuse of user data, especially when it comes to biometrics that are transferred and stored by a third party.

The terms of the promotion state that user photos are transferred to an external server that is GDPR compliant. It does not contain a key to link the image to a specific wallet.

Cochran has stated that he will stop using the service, despite his high activity in the past. He will not change his point of view until he sees meaningful changes.

The expert emphasized that he considers it dangerous when the team prioritizes growth over users. He expressed surprise that dydx founder Antonio Giuliano did not share a similar position.

According to Cochran, dydx considers user privacy a commodity and an acceptable risk to its growth acceleration prospects. By doing so, the team undermines trust.

Cinneamhain Ventures partner expressed the hope that a fully decentralized v4 version of the platform can be managed by users who put privacy first.

As a reminder, dYdX suspended the accounts of clients who previously interacted with the Tornado Cash Ethereum mixer. The latter was sanctioned.

Platform representatives acknowledged that the sudden flood of blocks affected “many users”, who often did not know the origin of their funds and did not directly use the service.

Read bitcoin- ForkLog news in our Telegram — cryptocurrency news, rates and analytics.