Convergence RFQ Raises $2.5 Million in Pre-Seed Funding Round
Convergence RFQ, a trading platform being developed on the Solana blockchain, has successfully raised $2.5 million in a pre-seed funding round. The funding was led by C² Ventures, with participation from other notable investors including Big Brain Holdings and the Israel Blockchain Association.
The startup initiated its fundraising efforts for the pre-seed round in the middle of last year and concluded it in June of this year. According to co-founder Uwe Cerron, the funding was secured through a simple agreement for future token round at a fully diluted valuation of $30 million.
The platform’s governance token will be known as CVG.
What is Convergence RFQ?
Convergence RFQ is an on-chain crypto trading platform that will support both spot and derivatives trading. The platform utilizes the “request for quote” (RFQ) method, where buyers request price quotes from sellers. This approach differs from traditional centralized exchanges that use central limit order books (CLOB) and decentralized exchanges that employ automated market makers (AMM).
RFQ addresses challenges associated with CLOB and AMM, such as slippage and front-running. It enables market makers and trading desks to provide competitive quotes and manage their exposure before executing trades.
Convergence RFQ on Solana and Arbitrum
Currently being built on the Solana blockchain, Convergence RFQ plans to expand its platform to also support the Ethereum Layer 2 network Arbitrum. The launch of the platform is scheduled for early next month.
The team at Convergence RFQ consists of six individuals, but co-founder Uwe Cerron intends to hire additional personnel, particularly in the marketing and growth functions.
Hot Take: Convergence RFQ Revolutionizes Crypto Trading with RFQ Method
Convergence RFQ’s innovative use of the RFQ method in its on-chain trading platform brings a new level of efficiency and control to the crypto trading landscape. By addressing issues like slippage and front-running, Convergence RFQ empowers market makers and traders to achieve optimal execution. With its upcoming launch on Solana and plans for expansion to Arbitrum, Convergence RFQ is poised to make a significant impact in the industry. Keep an eye on this platform as it revolutionizes crypto trading through its hybrid model that combines centralized exchange liquidity with decentralized pricing mechanisms.
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