Brave Signals a Pause to Referral Program
The Brave browser, known for its privacy focus and crypto integration, has made a decisive move by freezing its referral program in selected regions. This decision, announced on June 11, was sparked by the alarming discovery of a high volume of fraudulent referrers in countries like China, Russia, Indonesia, Vietnam, and Ukraine.
The Mechanics Behind the Referral Program
Referenced for enabling content creators to earn Basic Attention Tokens (BAT), the referral initiative incentivized users to spread the word about the browser. Initially worth a modest $1 million USD in BAT, the program exploded, reportedly yielding multiple times that amount. How does it work? Simply share a unique referral code, and if someone downloads the Brave browser, voilà! You earn tokens. This kind of viral marketing catapulted Brave’s user base to over 15 million monthly active users globally.
Fraudulent Activity Traced
However, with success comes scrutiny. As Brave discovered, a disproportionate number of referrals were flagged as fraudulent in certain regions. But fear not! Brave acted swiftly to suspend the program before any tokens were distributed. The interruption began on June 11 and was marked as a temporary hold, with hopes that the program could bounce back in the near future.
Ensuring Authenticity with ID Verification
To further combat this unsavory trend, Brave announced that content creators would need to verify their identity before participating in the referral program upon its resumption. While this may add an extra step, it aims to establish a layer of authenticity, safeguarding both the company and the genuine users involved.
Tremors in the Marketplace: Additional Controversies
Brave hasn’t just faced challenges with its referral program. It also found itself in the middle of a firestorm when it was reported that the browser unexpectedly filled the address bar with an affiliate link for Binance whenever users attempted to access the crypto exchange’s site. This prompted co-founder Brendan Eich to admit to the hiccup, assuring that a fix was on its way. As if that’s not enough, endorsements from figures like Joe Rogan and K-pop supergroup BTS have only intensified Brave’s visibility, contrasting with its recent struggles.
