According to a blog post published on Jan. 4, Singapore-based cryptocurrency exchange MEXC announced that it would allocate $20 million to support developments at the Sei Network. A layer-one blockchain designed for trading, Sei Network’s stated features include native order matching, front-end protection, intelligent block propagation, and 600-millisecond on-chain trade settlement. Leo Zhao, Investment Manager at MEXC Ventures, commented:
“umm [Creadores de Mercados Automatizados] was the dominant market making method in cryptocurrencies for the past 2 years. The lack of a more efficient market making strategy is largely due to technological constraints such as slow speed and smart contract restrictions. I believe Sei’s custom Layer 1 solution will be a game changer in the industry.”
Last August, Sei Network raised a $5 million funding round from investors including Multicoin Capital, Coinbase Ventures, Delphi Digital, Hudson River Trading, GSR, Hypersphere, Flow Traders, and others. By then, more than 20 decentralized applications had been built in the ecosystem. Sei claims that his blockchain can process approximately 22,000 requests per second and he has 250,000 testnet users. Similarly, to comply with exchange trading specifications, other decentralized solutions like dYdX chose to migrate their blockchain from Ethereum (ETH) to Cosmos (ATOM). The developers said that Ethereum simply couldn’t handle its order book of around 1,000 orders per second.
“Decentralized exchanges are also the most underserved application in cryptocurrency. They demand a unique level of reliability, scalability, and speed requirements that no other application needs. If a large exchange goes down for a few moments, it’s catastrophic, but just as much downtime. it’s much more tolerable for most other types of applications.”
MEXC Ventures currently has approximately USD 100 million in assets under management distributed among 300 portfolio companies. Its parent exchange, MEXC, processed around $600 million in total trading volume in the last 24 hours. The firm is known for its perpetual futures products, which launched in the fourth quarter of 2018.
#MEXC launches a $20M dedicated fund to support the development of key projects on @SeiNetwork
Check out what @zhao_ethinvestment manager at MEXC Ventures said about this initiative ⤵️ https://t.co/EkqnTRntOA pic.twitter.com/kRcCIpvjp1
— MEXC Global (@MEXC_Global) January 4, 2023
MEXC launches a dedicated fund of USD 20 million to support the development of key projects in @SeiNetwork
See what @zhao_eth, investment manager at MEXC Ventures had to say about this initiative
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.