Yes, participants (or their parents) can upload an image to replace their icons. 

Here's what it looks like on the participant page:

Here’s what it looks like on the bottom of the main campaign page (unless participants are hidden):

Here’s where campaign admins can change the image:

Here’s how it works:

When participants receive their invite emails, there will be a special link for them to upload an image.  No account creation or passwords are necessary.

Here’s what it looks like:

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