Market Analysis Report (16 Jun 2021)
16 Jun 2021
We all know that the adoption of the cryptocurrency industry has increased substantially in the last 3-4 years. However, the industry’s adoption, efficiency, and performance are still far from where traditional stock markets are.
The crypto industry is still in the stage of infancy, and we need to address and resolve a number of issues to make it a reliable financial industry. One of the major problems is the fragmented liquidity of crypto assets across the various crypto exchanges and protocols.
Several problems which are faced by the crypto industry at the moment are listed as follows:
Today, I have brought you a project Woo Trade that is focusing on resolving the above issues with a unique strategy and platform.
Woo Trade is a dark pool trading platform that provides high liquidity, negligible spreads, and zero trading fees. Woo Trade tries to solve liquidity and cost issues of crypto assets for exchanges, institutions, and investors. A dark pool is an Alternative Trading System where traders can interact privately. This helps in improving liquidity and pricing.
Woo Trade was established in June 2019 and received its seed funding from Hashkey Capital, Fenbushi Capital, SNZ & DFund. Woo Trade is incubated by Kronos Research, which is one of the leading quantitative trading firms and also the initial liquidity provider to Woo Trade. Kronos Research was founded in June 2018 and is a Designated Market Maker (DMM) for Binance, Huobi, Okex, and many other exchanges.
The smaller exchanges, which collectively handle a significant portion of market trading volume, are stuck with trying to build their internal market-making systems while simultaneously trying to attract a core user base. With the help of Woo Trade, these smaller exchanges can delegate the function of market making to Woo Trade Alternative Trading System (WATS) and focus on their business growth. Thus, Woo Trade can provide these exchanges with a fully functional order book.
Now, let us understand more about the founding team behind Woo Trade.
Jack Tan – Twitter
Jack is a co-founder and co-CEO of Kronos Research, a successful quantitative trading firm in digital assets. Jack started trading with equities at the age of 14 and graduated from Carnegie Mellon University. Post-graduation, he worked with BNP Paribas and Deutsche Bank for more than a decade.
Mark co-founded Kronos Research and acted as co-CEO. He completed his bachelor and masters in Computer Engineering at CMU. Mark started his professional career at Citadel Investment Group’s High-Frequency Trading unit in 2006. Post this; Mark leads Knight Capital’s electronic market development group.
Now, as we know about the foundation team, let us understand the features of Woo Trade platform.
The features offered by Woo Trade can be listed as follows:
As discussed earlier, Woo Dark Pool is a liquidity pool that exchanges can use to resolve their liquidity issues. The Dark Pool can help small exchanges with their fragmented liquidity and provide them with a ready-made order book.
The exchanges can focus on business growth and leave the function of market making to Woo Dark Pool, also known as WATS (Woo Trade Alternative Trading System). Further, Woo Trade helps to route CeFi liquidity to DeFi platforms, thus solving their market-making problems as well.
Woo X is a retail trading exchange platform of Woo Trade that offers zero-fee trading. A beta version of Woo X trading platform has already been launch, and the official launch has been planned somewhere in mid-June 2021.
The platform would be offering spot, margin, and futures trading with immense liquidity of Woo Dark Pools along with a zero transaction fee.
Woo Ventures is a program similar to Venture Capitalist firms that try and identify early-stage projects. As these projects mature, they would provide value to Woo Trade and WOO token holders.
The new projects would be benefitted Woo Trade as it would provide the project access to its user base. Further, WOO token holders who have staked their tokens would get airdrop rewards for these early-stage projects.
A user can stake his or her WOO tokens (in house governance token of Woo platform) to receive a number of benefits, such as:
Currently, WOO tokens can be staked on AscendEX with an Estimated APR of 12.78%. Soon, the staking feature would also be active on Woo X trading platform.
You can read more on Woo Staking over here.
As discussed above, Woo Trade is in the process of launching its Woo X trading platform, and many other features would be incorporated into this platform. The platform would also launch its mobile app for ios and android devices.
WOO is an in-house governance token of the Woo trade platform. It is an ERC-20 token that can be traded on most major exchanges. Every month WOO tokens are bought back and burned from the revenue generated by the platform.
Although currently, Woo Trade platform is centralized, it is expected to become decentralized. After decentralization, the governance of the platform will be managed by WOO token holders. However, the roadmap of decentralization is not clear from the whitepaper.
The platform is gaining momentum, with a Monthly volume trade on the platform in April 2021 was USD 4.5 Billion.
|Market Cap||USD 454.6 Million|
|Fully Diluted Value||USD 3.09 Billion|
|Volume (24 Hour)||USD 94 Million|
Following are the use cases of WOO token:
|S. No.||Exchange||Trade now|
|1.||Huobi Global||Click Here|
|8.||Hoo Exchange||Click Here|
You can read more about WOO token here.
The benefits of Woo Trade can be listed as follows:
However, there are some limitations as well.
The possible limitations of Woo Trade are as follows:
I understand that Woo Trade brings a lot of good and innovative solutions to the table. It aims to solve those crypto market problems which have not yet been identified by most of the market players (except some). Therefore, the project has a definite use case and possible future adoption.
The only thing with which I have a problem is a concrete roadmap for future decentralization of platform and governance module through which WOO token would receive its value. I will try to connect with the development team and would try to answers my questions in this regard. Once I have these answers, I think I would be able to voice my opinion on whether WOO is an investible token or not.
Please note that I am not a financial advisor, and this is not financial advice. DYOR before investing.
I hope this article would provide you a good insight into the Woo Trade and WOO Token. Let me know the projects or exchanges that you would like me to review.
Let me know your feedback in the comments section and share this article with your friends and colleagues. Subscribe to our newsletter for more such articles.