Cryptocurrency, Cryptocurrency Exchange, News

Binance Invests $13m In A Liquidity Platform

Binance is a popular crypto exchange globally for various reasons. It supports arguably the highest number of cryptos among any other exchange, and its simple user interface is one of the reasons it boasts over 25M users.

Making Moves Towards More User Satisfaction

However, the exchange continues to make moves to improve its services for its users. One of such moves is a $13m investment in a liquidity platform (the WOO network) through its investment arm (Binance labs). The WOO network is a bridge between users, exchanges, and DeFi platforms.

The investment arm was launched five years ago and has invested in many early-stage firms, notably Dorahacks and LayerZero. The former organizes hackathons, while the latter is an interoperable platform. Binance has also been involved in some mid-stage investments, such as the series c funding round of figment (a crypto staking firm).

Speaking on the recent investment in WOO network, a top-level executive of Binance labs, Peter Huo, remarked that WOO network’s features give it a unique edge in the crypto industry. One of such features is not charging any fee for on-chain, off-chain, and deep liquidity transactions. The executive also expressed his happiness at exploring a long-term collaboration between the two firms.

Why Binance Invested In WOO Network 

Besides exchanges, WOO also offers liquidity for more than 35 other platforms, including DeFi platforms and wallet providers. Furthermore, the network’s WOO trade and WOO x are some of the best products in the industry right now. The WOO trade platform supports trades for crypto traders, while WOO x offers deep liquidity trading with zero charges.

WOO started offering liquidity services in 2021 after launching its WOOfi swap on Binance Smart Chain. WOO had earlier raised $31m in its Series A funding last November. Leading investors in that funding round were avalanche and crypto.com. 

Coingecko data showed that WOO token price surged by nearly 11% in less than 24 hours of Binance’s investment announcement. Moreover, the network’s overall evaluation recently rose to nearly $1B.

Binance Enables Direct Withdrawals To Layer 2 Ethereum

In other Binance-related news, a famous twitter crypto analyst (lark Davis) tweeted today that Binance has enabled direct withdrawals to layer 2 Ethereum. While the exchange made the announcement to enable this feature three month ago, it seems to have implemented it right now.

 

There has been a rising demand for layer-2 solutions as Ethereum gas fees skyrocket. Thus, traders would no longer need the Ethereum mainnet before accessing layer-2 solutions such as Arbitrum one. Before Binance’s new feature, traders had to go through the stress and expense of bridging the Ethereum mainnet with layer-2 solutions like Arbitrum.

After dips earlier in the month, the Binance coin price is recovering gradually. The bulls have gained control in the last few days even though the technical indicators indicate a bearish long-term trend. BNB trades at $486 as of this writing, with its next crucial resistance at $511.

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