- IDEX exchange converted itself to centralized exchange with raising several concerns
- Since the exchange converted itself, several irregularities were observed
- Users of the exchange got blindfolded with few benefits, tending to ignore some major downsides
IDEX exchange is one of the leading, advanced, and semi-decentralized digital assets exchange that converted itself to a centralized exchange. The exchange aims to offer a real-time, high-performance trading experience. IDEX and IDEX Membership (IDXM) are two cryptocurrencies that the exchange offers. Among the two tokens, IDEX is the base utility token of the platform. At the same time, IDXM is a cryptocurrency operating on the Ethereum platform that allows the holders to enjoy some additional benefits provided by the exchange.
IDEX exchange has few hidden irregularities
In 2019, the IDEX exchange changed itself to a centralized exchange, which was quite common for the crypto market. However, following the change, some irregularities were observed. Several other exchanges have also followed the exchange’s path, which brought more concerns.
In 2018, when the exchange didn’t convert itself to a centralized one, IDXM was trading around 3 ETH tokens. However, as the exchange converted itself to a centralized exchange, it was observed that the price level of the token slid tremendously towards 0.17 ETH.
In 2018, IDEX had 1,50,000 users, among which many users had some ETH holdings. As the platform changed itself to a centralized one, some holdings of several investors got stuck. Moreover, as the price of the IDXM token dropped severely, such users faced heavy losses.
Few benefits helps to hide many downsides
After the conversion, IDEX exchange began offering few benefits. Mostly the users got blindfolded with high-speed trading at low fees. However, where the exchange offered good speed, users could not observe that it kept their private keys. With those keys, the exchange has full authority over the user funds.
Moreover, the users have trust in the platform as it is converted to centralized, but still, centralized exchanges also are vulnerable, as they are a prime target of criminals. Over the benefit of high transactions, the users ignore other factors like price manipulation, insider tradings, and fake volume. If we observe the price drop of IDXM tokens, it seems IDEX exchange has done clear manipulation for bulk consumption of Ethereum tokens. After all such activities, the exchange is still operating with no fear of legal actions. The regulatory enforcement should target these kinds of exchanges. Such activities in the cryptosphere are needed to be monitored significantly to assure the users to trade risk-free.