We have seen quite a few new and interesting projects in the world of cryptocurrency these past few months. One of those projects is Ethfinex, recently announced by the parent company of Bitfinex. It will be a discussion and ERC20 investment and trading platform for all Ethereum users, and it will use a hybrid decentralized exchange model under the hood.
Ethfinex Could Be a Game Changer
It is always exciting to see established entities in the cryptocurrency world launch new initiatives. Many people have come to know the Bitfinex exchange. Its parent company also runs the Tether.to platform. It will now be adding a third platform to its umbrella of services, which will focus on the Ethereum community. That is a rather remarkable decision which shows there is still a lot of faith in the future of the Ethereum ecosystem.
Ethfinex will not be your average trading platform. Rather, Ifinex Inc. will introduce Ethfinex as a decentralized information and exchange platform for Ethereum-based assets. ERC20 tokens will find a new home on this upcoming platform once it has launched. That is a more-than-welcome change, as a lot of these tokens have been having a hard time getting on regular exchanges.
However, Ethfinex will not just be about trading. The upcoming platform will also serve as a community and information hub for all current and future Ethereum-based projects. It will be interesting to see how that plays out, considering there are already plenty of ways for people to do so. Then again, there are also a lot of recurring questions that get answered in the same manner repeatedly. This is especially true when it comes to cryptocurrency ICOs.
A hybrid and decentralized model will be used for the exchange portion of the platform. Creating a high-liquid customer-centric digital asset exchange platform with decentralized ownership will be very difficult to pull off, especially considering that this ownership is to be turned over to users over time. The company is seeking to model their new platform in such a manner as to resemble the Ethereum ecosystem itself.
The decentralized aspect of Ethfinex can be explained easily. All trades on the platform will be processed by a high liquidity pool on-chain without iFinex ever having custody of the funds. The company is confident that they can create a “laboratory” for creating decentralized exchange protocols. Additionally, the company plans to issue an Ethfinex token which will not be sold through an ICO.
There is no lack of ambition as far as this project is concerned. Whether or not the venture will be successful remains a big question for the time being. iFinex should be praised for its novel approach toward creating some sort of decentralized exchange. The issuance of this new token will raise a lot of interest as well, even though there are many details missing for the time being. Ethfinex sounds like a project that will be invaluable to Ethereum supporters.