MEXC announced that it is launching a $20 million dedicated fund to support the development of key projects on Sei Network.
In a blog post from January 4, Singapore-based cryptocurrency exchange MEXC reported that it would set aside $20 million to fund Sei Network projects.
Sei Network is a layer one trading blockchain that boasts native order matching, frontrunning prevention, smart block propagation, and 600 milisecond on-chain transaction settlement, among other features. MEXC Ventures’ investment manager, Leo Zhao, said:
“AMM [Automated Market Makers] was the dominant market-making method in crypto for the past 2 years. The lack of a more efficient market-making strategy is in large part because of technology restrictions like low speed and smart-contract restrictions. We believe Sei’s customized Layer 1 solution will be a game changer in the industry.”
In August of last year, Multicoin Capital, Coinbase Ventures, Delphi Digital, Hudson River Trading, GSR, Hypersphere, Flow Traders, and other investors contributed to Sei Network’s $5 million investment round.
Over 20 decentralized applications had already started to emerge in the ecosystem by that point. Sei claims to have 250,000 testnet users and a blockchain that can process about 22,000 orders per second.
Similar to this, other decentralized solutions, including dYdX, decided to switch its blockchain from Ethereum (ETH) to Cosmos to meet exchange trading requirements (ATOM). Ethereum just couldn’t handle its orderbook of about 1,000 orders per second, according to developers.
“Decentralized exchanges are also the most underserved application in crypto. They demand a unique level of requirements for reliability, scalability, and speed that no other apps need. If a large exchange goes down for a few moments, it’s catastrophic, but the same downtime is far more tolerable for most other application types.”
At the moment, MEXC Ventures manages 300 portfolio firms with an estimated $100 million in assets. In the previous 24 hours, its parent MEXC exchange processed a total trading volume of about $600 million. The company’s eternal future products, which debuted in Q4 2018, are well known.
