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.
After the 2022 crypto market winter, the market entered 2023 with some signs of recovery, but still ups and downs, with only specific assets gaining popularity at times.
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 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).
Meanwhile, WEEX has been making significant moves, obtaining the SVGFSA license, integrating Alchemy Pay's On & Off-Ramp payment solution, pioneering the "slippage protection" feature, applying for a regulatory license for crypto business in Hong Kong, and expanding into the Korean market, consistently creating industry buzz.
Currently, WEEX ranks in the top 7 globally among derivatives exchanges on CMC, top 25 on Feixiaohao's global exchanges list, and top 30 among global spot exchanges on CMC. Its top 6 position for average liquidity on CMC is particularly noteworthy, capturing industry attention.
From relative obscurity to becoming a market dark horse, how did WEEX achieve this? 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 our Core: Delving Deep into the Liquidity Moat
When investors choose an exchange, the most crucial factor they consider is the trading depth, especially during rapid market surges or plunges. A platform with good depth can help maintain relatively stable cryptocurrency prices when handling large trades, preventing excessive volatility. Conversely, platforms with poor depth are susceptible to being pierced by a flood of one-sided orders, resulting in sharp price fluctuations, which can lead to liquidations.
Insufficient trading depth can result in significant slippage. They may either miss profit opportunities (when limit orders don't fill) or end up with executed prices significantly different from what they wanted (market orders). Profitable strategies can turn into losses.
Therefore, for any exchange, trading depth is the core competitive advantage.
WEEX is known for its trading depth. The platform has established a dedicated liquidity center and continually improves and expands its trading depth. It leads the pack with top-ten order book volumes for popular trading pairs, setting an industry benchmark. Its order book thickness and price spreads surpass most other futures trading platforms, rivaling top platforms like BINANCE and Coinbase. WEEX minimizes trading costs and liquidity risks, allowing users to execute smoothly even in extreme market conditions.
According to the CMC Global Exchange Average Liquidity Ranking, WEEX ranks sixth, trailing only behind platforms like Binance, Coinbase, Kraken, Gemini, and others.
To confirm trading depth, WEEX pioneered the "slippage protection" program. When users encounter slippage and provide verified evidence, they can receive compensation for price differences in their orders.
Addressing User Pain Points: Embracing Futures Copy Trading
Where there are user pain points, there are opportunities for entrepreneurs. Every crypto market hotspot, new model, or innovation spawns a wave of new standout projects.
In the realm of exchanges, derivatives trading surpasses spot trading in market size. During the 2022 crypto winter, spot market volumes hit multi-year lows, while derivative trading (primarily futures) slightly dropped but remained over twice the volume of spot trading. This growth, over 25% of spot trading volume compared to less than 25% in 2019, marks a significant milestone in the crypto market's journey to maturity.
Derivative trading, with both long and short positions, offers profit opportunities in any market direction. Efficient capital use can yield substantial returns, primarily driven by price volatility, even in bearish markets.
However, not everyone can navigate the price swings successfully. We often hear crypto veterans say, "Playing with futures as a newbie is a sure way to lose money." Newcomers often lack professional market analysis skills, and may not have the time or energy to monitor the market continuously, especially for those with full-time jobs. The market operates 24/7, creating a demanding environment.
Recognizing these pain points faced by futures trading newcomers, WEEX introduced copy trading. This allows users to follow professional traders seamlessly, lowering entry barriers. It not only eases entry into futures trading but also boosts trade success rates. Plus, it mirrors pro traders' positions, eliminating real-time monitoring needs.
WEEX's copy trading is widely popular, with 5,000+ professional traders. Their historical performance, win rates, followers, and tenure are public on the app. Users choose preferred traders and copy their strategies. Over 20,000 users participate, with $1B+ cumulative trading volume, $50M+ net profits, and an annualized return rate of 365%.
As the trend grows, many second and third-tier platforms adopt copy trading to gain market share, even causing a DEX platform to shift into offering copy trading futures.
1,000 BTC Protection Fund: Building User Confidence
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.
You can know more about WEEX on Google website: https://www.wee.xcom
