According to The Block, the cryptocurrency exchange Woo X, incubated by the Taiwanese quant team Kronos, has raised $9 million in the latest round of financing 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 was not to increase the company’s capital, but to improve the platform’s liquidity and align the interests of liquidity providers (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 to overcome the limitations of 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 suspended all trading, which briefly caused issues for Woo X, a trading platform incubated by Kronos, with Kronos being the main market maker for the exchange.