WOO X Raises $9 Million Funding to Boost Liquidity Optimization
In Brief
WOO X raised $9 million funding for global market expansion, acquisition of regulatory licenses and liquidity offerings enhancement.
Cryptocurrency exchange WOO X announced that it raised $9 million in its latest funding round, led by Wintermute, Selini Capital, Time Research, Presto Labs, Pulsar, AlphaLab Capital, Efficient Frontier, Amber and Riverside Hedge, among others. The funds will be directed towards WOO X’s global market expansion initiatives and the acquisition of regulatory licenses, reflecting the exchange’s strategic focus on growth and compliance.
Jack Tan, co-founder of WOO, emphasized that the primary objective of the funding is to “align the interests of liquidity providers,” with a focus on fostering collaboration among market makers who have committed to enhancing liquidity on WOO X, rather than primarily raising capital.
The cryptocurrency exchange plans to introduce a Decentralized Market Maker (DMM) program for its spot markets during the first quarter of this year. According to the company, the implementation of these initiatives collectively aims to achieve a 100% custody ratio for WOO X by the second quarter of this year.
“We are thrilled to share the expanded relationship of market makers on WOO X, following the launch of our DMM program in August last year. We anticipate liquidity on WOO X to improve substantially in the next few months, starting with BTC and ETH perpetual futures markets and expanding into altcoin perpetual futures and all spot markets,” said Jack Tan, co-founder of WOO, in the written statement.
WOO X’s Revamped Business Model
Jack Tan noted that WOO X has implemented several measures to overhaul its business model in the third quarter of the previous year, including updates to its fee structure, improvements in its technological infrastructure to accommodate multiple DMMs quoting simultaneously, the introduction of a maker rebate in USDT, and the launch of a DMM rewards pool. These actions aim to incentivize DMMs to contribute liquidity to WOO X.
Additionally, the platform underwent a restructuring, opting to collaborate with a broader range of liquidity providers for both spot and perpetual futures markets.This strategic shift aimed to transition from reliance on a single liquidity provider, Kronos Research.
In November 2023, Kronos faced a security breach resulting in an approximate loss of $25 million. In response, Kronos temporarily halted all trading activities, also causing disruptions on WOO X, which was incubated by Kronos and on which Kronos served as a key market maker.
Plans to Enhance Market Position
Founded in 2021, WOO X operates as a cryptocurrency trading platform utilizing the Payment for Order Flow (PFOF) compensation model. This approach incentivizes brokers by rewarding them for routing orders to diverse market participants for execution. Additionally, WOO X offers deep liquidity for digital assets, allowing a substantial presence of both buyers and sellers, without imposing any trading fees.
Recently, WOO X collaborated with OpenTrade, a platform for tokenized real-world assets (RWA). This partnership aims to provide users in Asia with access to tokenized US treasury bill products. Through this initiative, users can earn yields by engaging with tokenized T-Bills and also have the opportunity to secure USDC loans against their liquid assets.
With the new funding, WOO X is set to redefine its position in the global market and partner with more liquidity providers, enhancing its offerings and establishing a stronger presence in the evolving cryptocurrency landscape.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
