Crypto Exchange WOO X Nets $9M in a Funding Round
WOO X’s co-founder noted the funding round sought to ‘align liquidity providers’ interests’ instead of generating capital. WOO X, a crypto exchange, has generated $9M in its most recent funding round from investors, including Wintermute, a crypto market maker.
In a statement, the exchange claimed that its selected market makers had provided fresh funding.
WOO X Raises $ 9 Million for Increasing Liquidity
Additionally, Presto Labs, Riverside Hedge, Selini Capital, Efficient Frontier, Wintermute, Pulsar, Amber, Presto Labs, AlphaLab Capital, and Time Research participated in the funding.
In a statement, Jack Tan, WOO X’s co-founder, revealed they are excited to share the improved market makers’ relationship on Woo X after unveiling the DMM program in August 2023.
He also noted they expect liquidity on the crypto exchange to improve significantly in the next several months, beginning with Ethereum and Bitcoin perpetual futures markets and expansion into altcoin perpetual futures as well as all spot markets.
WOO revealed that in the third quarter of 2023. it reconstructed its business model to collaborate with more liquidity providers for perpetual and spot futures markets. This was a means to ‘shift from Kronos Research, a liquidity provider.’
WOO X Seeks to Broader its Operation
In November last year, a hack on Kronos led to the loss of nearly $25M. The liquidity provider halted all trading after this event, which, at a point, resulted in issues on WOO X. In this case, Kronos incubated this exchange and also served as a critical market maker.
WOO X has restructured its business model by implementing various interventions. In a statement, the exchange revealed outstanding actions such as the revision of fee structure, unveiling a maker rebate in USDT, and improving its technological infrastructure to concurrently back several DMMs quoting.
Additionally, it noted the unveiling of a DMM rewards pool to inspire DMMs to offer further liquidity on WOO X.
Strategies to Improve Liquidity
WOO X intends to unveil a DMM program for its spot markets in the initial quarter of 2024. The firm added that the initiatives will enable the exchange to attain a full custody ratio by the second quarter of this year jointly.
The statement reveals that the firm plans to utilize the newly generated funds for its international market expansion and to acquire regulatory approvals. According to Jack, the funding’s primary objective was to ‘align liquidity owners’ interests instead of generating capital.
This is because the round’s participants were market makers that have promised to enhance liquidity on the exchange.
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