Bitfinex to Launch EOS.IO-Based Decentralized Exchange

Bitfinex has announced plans to create a decentralized crypto exchange that is to be called EOSfinex and built on the EOS.IO blockchain platform.

Bitfinex announced on Monday it would build a decentralized exchange on the EOS.IO blockchain platform. The high-performance exchange will be called EOSfinex and will combine the speed and scalability of the EOS.IO blockchain with Bitfinex’s expertise in the crypto market, according to the statement.

The crypto exchange said it had researched a number of protocol-level technologies to assess their compatibility with a high-volume, blockchain-based platform. EOS.IO, the creation of Block.one, was identified as a great match on account of its capability to process tens of thousands of transactions per second at low costs.

Bitfinex CEO J.L. van der Velde commented on the deal with Block.one:

“We are excited to leverage EOS.io to further advance the field of high performance and trustless on-chain exchange. Block.one continues to display an unwavering dedication to improving blockchain scalability through the EOS.IO platform and it is our hope that this collaboration will allow significant advancement for all decentralised exchange.”

Bitfinex is one of the largest crypto exchanges in terms of trading volume. According to Bitcoinity, Bitfinex accounted for 30% of the Bitcoin trading volume in the last 30 days.

Despite its popularity, Bitfinex was criticized for its connection with Tether, the company that issues USDT tokens. USDT is meant to be backed by US dollars, but many skeptics think that Tether (or even Bitfinex via Tether) has issued USDT tokens without being covered by USD and artificially increased liquidity.

These doubts resurfaced after Bitfinex’s announcement of the EOSfinex exchange, and the official tweet sparked some skeptical comments:

“You can’t produce an audit for bitfinex/tether on one exchange, so you start up 2 other exchanges infected with tether that you won’t provide audits as well.  The way you all are going you will have an exchange for every coin in crypto instead of simply solving the one problem,” wrote Patrick Wayne.

Bitfinex’s tweet had some positive comments as well.

The EOS price didn’t show a clear trend, gaining 1.88% in the 24 hours after the announcement, according to Coinmarketcap.