Crypto Exchange WOO X Raises $9 Million in Funding Round
Crypto exchange WOO X has announced that it has secured $9 million in its latest funding round. The funding comes from investors including crypto market maker Wintermute, as well as Selini Capital, Time Research, Presto Labs, Pulsar, AlphaLab Capital, Efficient Frontier, Amber, and Riverside Hedge.
Co-founder of WOO X, Jack Tan, expressed excitement about the expanded relationship with market makers on the platform. He stated that liquidity on WOO X is expected to improve significantly in the coming months, starting with BTC and ETH perpetual futures markets and expanding into altcoin perpetual futures and all spot markets.
Revamping Business Model for Enhanced Liquidity
WOO X revamped its business model in Q3 2022 to partner with more liquidity providers for spot and perpetual futures markets. This shift was made to move away from relying solely on a single liquidity provider, Kronos Research.
In November 2023, Kronos experienced a hack resulting in an estimated $25 million loss. As a result, Kronos paused all trading activities. This had an impact on WOO X since it was incubated by Kronos and relied on them as a key market maker.
WOO X took several actions to revamp its business model. These included updating fee structures, enhancing technology infrastructure to support multiple designated market makers (DMMs) quoting simultaneously, introducing a maker rebate in USDT, and launching a DMM rewards pool to incentivize liquidity provision on the platform.
Plans for Liquidity Enhancement and Market Expansion
The exchange has plans to launch a DMM program for its spot markets in Q1 of this year. With these initiatives in place, WOO X aims to achieve a 100% custody ratio by Q2 of this year.
The newly raised funds will be used for global market expansion and obtaining regulatory licenses. The primary goal of the funding is to align the interests of liquidity providers, rather than raising capital. Market makers participating in the funding round have pledged to improve liquidity on WOO X.
Hot Take: WOO X Secures $9 Million in Funding Round to Boost Liquidity and Expand Markets
Crypto exchange WOO X has successfully raised $9 million in its latest funding round. With participation from market makers like Wintermute, the funding aims to enhance liquidity on the platform. WOO X has been revamping its business model to partner with more liquidity providers and move away from relying on a single provider. The exchange plans to launch a DMM program for its spot markets, which will further improve liquidity. The funds will also be utilized for global market expansion and obtaining regulatory licenses. Overall, this funding round signifies WOO X’s commitment to enhancing its services and expanding its reach in the crypto market.
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