On August 1st, WEEX made a significant announcement, securing a new round of funding at a valuation of $100 million. This funding comes with strategic investments from FSN, a South Korean advertising technology giant and publicly traded company.
While the crypto market experienced ups and downs during the transition from the 2022 market winter to 2023, WEEX has shown exceptional growth and resilience. Unlike other exchanges（like FTX exchange) that downsized operations, WEEX has expanded rapidly, establishing itself as a unique success story. In 2022 alone, WEEX witnessed an impressive 3,000% growth in its futures business, which continued into 2023. The platform listed over 80 projects, attracting a 100% monthly increase in traders. During peak times, WEEX recorded over 1,000 daily new registered users, along with more than 500 first-time depositors, setting new records for daily active users (DAU).
WEEX’s accomplishments have not gone unnoticed within the industry. The platform has made significant moves such as obtaining the SVGFSA license, integrating Alchemy Pay’s On & Off-Ramp payment solution, pioneering the innovative “slippage protection” feature, and expanding into the Korean market. These strategic initiatives have generated considerable industry buzz and solidified WEEX’s position as a formidable player.
Currently, WEEX ranks among the top 7 globally among derivatives exchanges on CMC, the top 25 on Feixiaohao’s global exchanges list, and the top 30 among global spot exchanges on CMC. Notably, WEEX holds the sixth position for average liquidity on CMC, capturing attention and admiration from the industry.
From relative obscurity to becoming a market dark horse, how did WEEX achieve that? This article aims to explore its journey from being “Precision to Navigation” to becoming a leader in a specialized sector by examining the development trajectory of WEEX.
Focused on Core Strengths: Delving Deep into WEEX’s Liquidity Moat
When it comes to choosing an exchange, trading depth plays a crucial role in investors’ decision-making process. Particularly during rapid market surges or plunges, a platform with robust trading depth can help maintain relatively stable cryptocurrency prices and prevent excessive volatility. On the contrary, platforms with insufficient depth may be vulnerable to one-sided orders flooding in, resulting in sharp price fluctuations and potential liquidations.
Recognizing the importance of trading depth as a core competitive advantage, WEEX has established itself as a leader in that aspect. The platform has dedicated significant resources to building and expanding its liquidity center, continually improving its trading depth. As a result, WEEX stands at the forefront with top-ten order book volumes for popular trading pairs, setting an industry benchmark. Its order book thickness and price spreads rival major platforms like Binance and Coinbase. It minimizes trading costs and liquidity risks. Even in extreme market conditions, users can execute trades smoothly on WEEX.
In fact, according to the CMC Global Exchange Average Liquidity Ranking, WEEX currently holds an impressive sixth position, trailing behind only leading platforms such as Binance, Coinbase, Kraken, Gemini, and others.
To further validate its commitment to trading depth, WEEX introduced the innovative “slippage protection” program. This program allows users to receive compensation for price differences in their orders when encountering slippage, provided they provide verified evidence. It offers an extra layer of reassurance for traders, ensuring fair execution and protecting against potential losses due to unfavorable price movements.
Addressing User Pain Points: Introducing Futures Copy Trading
In every pain point lies an opportunity for innovation and growth. Within the realm of exchanges, derivative trading has surpassed spot trading in terms of market size. While spot market volumes hit multi-year lows during the 2022 crypto winter, derivative trading, especially futures trading, remained over twice the volume of spot trading. This significant milestone showcases the market’s journey towards maturity.
Derivative trading, with its ability to profit from both long and short positions in any market direction, presents lucrative opportunities for traders. However, successfully navigating price swings requires professional market analysis skills and continuous market monitoring, which can be challenging for newcomers or those with other commitments.
Acknowledging these pain points faced by futures trading newcomers, WEEX introduced a user-friendly solution: copy trading. This innovative feature allows users to seamlessly follow and replicate the strategies of professional traders, reducing entry barriers and enhancing trade success rates. With over 5,000 professional traders to choose from, their historical performance, win rates, followers, and tenure are publicly displayed on the platform. Over 20,000 users have joined the copy trading community on WEEX, contributing to a cumulative trading volume exceeding $1 billion, net profits surpassing $50 million, and an impressive annualized return rate of 365%.
The popularity of copy trading has grown significantly, leading even second and third-tier platforms to adopt this feature to gain market share. The influence of copy trading has become so profound that it has even prompted a DEX platform to transition into offering copy trading futures.
Building User Confidence: The 1,000 BTC Protection Fund
In 2022, institutions like Terra and 3AC faced setbacks, including the closure of FTX, the world’s second-largest exchange. This event triggered industry-wide FUD and raised concerns about reserve adequacy in many exchanges.
WEEX emphasizes user asset security. Since its start, it established a 1,000 BTC Investor Protection Fund, publicly disclosing its hot wallet address for external monitoring. In September 2022, WEEX added a 10 million USDT protection fund, further strengthening reserves and alleviating FUD concerns.
WEEX’s commitment to security transparency earned user trust during the crypto market‘s “Lehman Moment,” attracting substantial funds. In 2022, the platform saw a remarkable 3,000% futures business growth, staging a comeback in the bear market.
WEEX secures data through overseas storage, multi-location servers, and backups using Amazon AWS and Hong Kong CDN. It employs AI-human security and multi-layer firewalls, maintaining an A+ rating in 12 security metrics since inception with no incidents.
WEEX’s global regulatory compliance includes licenses from the U.S. MSB, Canadian MSB, and Saint Vincent FSA, with applications in progress for more licenses.
In a market cycle transition, exchanges often see reshuffling. As a new exchange player, WEEX, backed by potential financing and support from FSN, aims to accelerate its rise in the exchange landscape.
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