Blockchain Wallet’s Stellar (XLM) Giveaway in Exchange for Personal Data May be a Bad Idea
Blockchain wallet has introduced a campaign to advocate for the mass adoption of the Stellar Lumens (XLM) digital currency. As an incentive, the wallet platform is offering XLM that is worth $125 million worth.
The first 5 million applicants will be credited with $25 worth of XLM. According to the Blockchain wallet, XLM was preferred to the more widespread options such as Bitcoin and Ethereum because of its superior scaling abilities. In this regard, Peter Smith, the CEO of Blockchain wallet, said that the XLM network can comfortably handle millions of transactions effortlessly. Furthermore, its swiftness and affordability make it the ideal entry-level digital currency. Peter concluded by saying that this move is aimed ta granting financial freedom to the masses.
Interested parties are required to install the wallet app onto their devices to become eligible for receiving the $25 XLM bonus. In addition, they will be required to undergo KYC and AML procedures to eliminate the possibility of scamming. This, however, has generated mixed reactions in the XLM community. Some people are arguing that people should not reveal their private data in exchange for a paltry $25.
Nonetheless, this initiative expects to attract many investors, especially in the developing world. That being said, the mandatory KYC/AML procedures contradict the principle of anonymity that cryptocurrencies always seek to achieve.