MEXC has launched a $20 million ecosystem fund to support Sei Network. Meanwhile, the altcoin project had previously raised $5 million in funding in August 2022.
Investment decision from MEXC in this altcoin project
According to a blog post published on January 4, Singapore-based cryptocurrency exchange MEXC announced that it will allocate $20 million to support developments in Sei Network. A layered Blockchain designed for commerce, the stated features of Sei Network include local order matching, front-line protection, smart block propagation, and 600-millisecond on-chain trade agreement. Leo Zhao, investment manager at MEXC Ventures, commented:
AMM (Automated Market Makers) has been the dominant market creation method in crypto for the past 2 years. The lack of a more efficient market creation strategy is largely due to technology constraints such as slow speed and smart contract restrictions. We believe Sei’s customized Tier 1 solution will change the game in the industry.
Sei Network has previously raised corporate funds
cryptocoin.com As we reported, last August, Sei Network raised $5 million in funding from investors. Multicoin Capital, Coinbase Ventures, Delphi Digital, Hudson River Trading, GSR, Hypersphere, Flow Traders and others participated in this funding round. By then, more than 20 decentralized applications were being built in the ecosystem. Sei claims that Blockchain can process around 22,000 orders per second and has 250,000 test-net users. Similarly, other decentralized solutions like dYdX have chosen to migrate their Blockchain from Ethereum (ETH) to Cosmos (ATOM) to meet the exchange trading specifications. The developers said that Ethereum will not be able to handle an order book of around 1,000 orders per second. Leo Zhao made the following assessment on the subject:
Decentralized exchanges are also the least serviced practice in crypto. They demand unique levels of reliability, scalability, and speed that no other application needs. If a major stock market crashes for a few minutes, it’s a disaster. But the same downtime is much more tolerable for many other types of applications.
MEXC Ventures currently has approximately $100 million in assets under management spread across 300 portfolio companies. The main MEXC exchange has traded approximately $600 million in total trading volume in the last 24 hours. The firm is known for its continuous future products launched in Q4 2018.