According to The Block, Taiwan-based cryptocurrency exchange Woo X, incubated by the quantitative team Kronos, has raised $9 million in funding in its latest round, from market makers and quantitative trading teams including Wintermute, Selini Capital, Time Research, Presto Labs, and Amber.
WOO co-founder Jack Tan emphasized in a statement that the main purpose of raising funds is not to increase the company’s capital, but to improve the platform’s liquidity and align the interests of liquidity providers (i.e., market makers) with the company’s interests.
Woo stated that the company improved its business model in the third quarter of last year by collaborating with more liquidity providers in spot and perpetual futures markets, thereby overcoming the limitations of relying on a single liquidity provider (Kronos Research).
In November 2023, Kronos experienced a hack that reportedly caused an estimated $25 million in losses. Following the incident, Kronos temporarily halted all trading, which led to issues for Woo X, the exchange incubated by Kronos, with Kronos being its main market maker.
