Sei Network Getting a Financial Boost
In January 2023, Singapore-based cryptocurrency platform MEXC made waves by announcing a whopping $20 million allocation aimed at propelling developments on the Sei Network, a dedicated layer 1 blockchain built for trading. With its innovative features, Sei Network positions itself as a formidable force in the crypto trading landscape, boasting native order matching, frontrunning protection, smart block propagation, and an impressive 600-millisecond on-chain trade settlement.
A Game Changer for Market Making
Leo Zhao, the investment manager at MEXC Ventures, weighed in with his thoughts on the evolution of market-making strategies, emphasizing that Automated Market Makers (AMM) had dominated for the past couple of years. Zhao stated,
“The lack of a more efficient market-making strategy is largely due to technology restrictions like low speed and smart-contract limitations. Sei’s layer 1 solution promises to be a game changer in the industry.”
Securing Investment
Sei Network isn’t new to fundraising; last August, it raised $5 million from a cohort of impressive investors including Multicoin Capital, Coinbase Ventures, and more, bringing decentralized applications in its ecosystem to over 20. With claims of processing approximately 22,000 orders per second and attracting 250,000 testnet users, Sei Network is not just talk.
The Need for Speed and Reliability
As traditional platforms like Ethereum grapple with scalability, decentralized exchanges are in dire need of a unique solution. Developers from platforms such as dYdX have already migrated from Ethereum to Cosmos due to the former’s inability to handle substantial order books efficiently. According to Zhao,
“Decentralized exchanges are the most underserved applications in crypto. They require unmatched levels of reliability, scalability, and speed.”
The sentiment underscores the critical nature of uninterrupted operations in the trading world—where a few downtime minutes could lead to catastrophic losses for a major exchange.
MEXC’s Strategic Portfolio
MEXC Ventures currently boasts an impressive $100 million in assets under management, spread across 300 portfolio companies. Meanwhile, the parent MEXC exchange recorded around $600 million in total trading volume in just the last 24 hours, cementing its reputation as a heavyweight in the crypto space, particularly known for its perpetual future products launched back in 2018.
Final Thoughts
The launch of this dedicated fund could be a game changer not just for Sei Network but for the broader crypto ecosystem, especially in addressing the growing demand for more efficient trading infrastructures. As the crypto market continues to evolve, initiatives like MEXC’s investment could pave the way for new advancements and solutions that prioritize speed, reliability, and innovation.
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