Crypto exchange WOO X announced that it successfully raised $9 million in its latest funding round. The funding comes from various investors, including crypto market maker Wintermute, as stated by the company.
WOO received support from its designated market makers, including Wintermute, Selini Capital, Time Research, Presto Labs, Pulsar, AlphaLab Capital, Efficient Frontier, Amber, and Riverside Hedge, all of whom took part in the funding.
The company intends to use the newly raised funds for its global market expansion and obtain regulatory licenses, according to the statement.
Tan noted that the main purpose of the funding was to “align interests of liquidity providers” rather than raising capital, as the round was participated by market makers that have pledged to improve liquidity on WOO X.
Woo announced that in the third quarter of last year, it redesigned its business approach to collaborate with a broader range of liquidity providers for both spot and perpetual futures markets. The goal was to shift away from relying solely on a single liquidity provider, Kronos Research.
“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,” Jack Tan, co-founder of WOO, said in a statement.
WOO X has made several changes to improve its business model. These include updating its fees, improving its technology to handle multiple market makers quoting at the same time, introducing a maker rebate in USDT, and starting a DMM rewards pool to encourage market makers to add liquidity on WOO X.
The exchange plans to launch a DMM program for its spot markets in the first quarter of this year. “Collectively, these initiatives will enable WOO X to achieve a 100% custody ratio by Q2 of this year,” the company added.
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