IDEX Raises $2.5M to Rebuild Hybrid Exchange for Algorithmic Traders

IDEX has raised $2.5 million to relaunch as a trading platform accessible to market makers and algorithmic traders.

The Ethereum-based hybrid exchange said Thursday the $2.5 million would go to launching IDEX 2.0, a new, more liquid platform.

IDEX's creator, Panama-based Aurora Labs, raised $6 million in an initial coin offering in early 2018.Market makers and algorithmic traders will be able use the new exchange.

They have previously been shut out because of high transaction costs.

In a statement, the exchange said this new group of traders will tighten spreads, making IDEX cheaper and more seamless for its users.

They are controversial: some allege they manipulate markets, but advocates say they improve liquidity and market performance.

IDEX is a hybrid exchange in that settlement and storage are decentralized, while trade executions and deposits are processed centrally.

This makes it fast enough to be usable while offering the security of a fully decentralized exchange.

The hybrid aspect of IDEX's design will remain unchanged with the IDEX 2.0 launch, expected in the next few weeks.

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