Woo Network - $WOO, Asset Review
Figure A
General Information-What is Woo Network
Woo Network Background
Woo Network Funding/Collaboration
Token Information-Tokenomics
Governance
Additional Information-
Staking
Technical Analysis
Conclusion
General Information-
What is Woo Network
Woo Network is a liquidity hub that connects market participants to deep liquidity. This means that exchanges, institutions, and traders can access decentralized liquidity at a near zero cost. Woo network pools together CeFi and DeFi services to enable various cryptocurrencies that market participants need to trade. Woo Network is made up of several elements per the first photo above. (1) WooX is a centralized exchange that allows traders to access deep liquidity and lower to zero-fee trading. (2) WooTrade is a liquidity pool that gives order books deeper depth and tightens up bid/ask spreads. (3) WooFi is a decentralized exchange that provides DeFi-related offerings like yield farming, collateral, and more. Lastly, (4) WooVentures is an investment arm that seeks to partner with projects and ecosystems. Woo Network has a variety of products but stems from acting as a liquidity hub.
2. Woo Network Background
Woo network is a project based out of Taipei, Taiwan, and was founded by Jack Tan and Mark Pimentel in 2019. Both founders Jack and Mark previously founded a trading & research firm called Kronos Research. While being at Kronos Research they noticed that it was difficult to access deep liquidity in crypto. The founders created Woo Network because they wanted to solve the issue of deep liquidity, by making it more easily accessible and affordable for traders. Both founders have strong technology backgrounds as they use to work at firms like Citadel, Sun Trading, BNP Paribas, Citi, and Deutsche Bank. Currently, they are both present on Woo Network and Kronos Research.
3. Woo Network Funding/Collaboration
Woo Network held an initial exchange offering (IEO) in November of 2021. They raised a total of 30 million dollars which equated to 10% of $WOO’s total supply that was sold on participating exchanges. Woo Network has prominent investors like Binance Labs, Crypto.com Capital, Dragonfly Capital, Kronos Research, Three Arrows Capital, and many more. Woo Network strategically partnered with many exchanges which creates a mutually beneficial relationship per the image below. These partnerships help accomplish higher network volumes by capturing more order flows which creates a bigger pool of liquidity to access across all exchanges. Woo Network also has ecosystem partners like Chainlink, Bittorrent, Polygon, Binance Smart Chain, Vechain, Algorand, Fantom, and many more that can be found here.
Figure B
Token Information-
Tokenomics
$WOO is an ERC-20 and BEP-20 token that is used on both Ethereum and Binance Smart Chain. Currently, the circulating supply is 1,151,845,987 with a max capped supply of 3,000,000,000 tokens according to Coingecko. $WOO token is used for multiple use cases like staking, lower trading fees, airdrops, yield farming, collateral, social trading capability, and governance. $WOO token also has an aggressive burn which is good* for holders. More details on that here. Every month, 50% of the Woo Network revenue is utilized to buyback $WOO tokens on the open markets, then burn it. As for the token breakdown, 10% of the supply was sold in an IEO. As for the total supply, 20% is allocated to token sales, 25% is dedicated to the team & advisors with a 4-year lock-up period, 5% is allocated for liquidity and the remaining 50% is reserved for the WOO Network Ecosystem(staking and mining rewards.)
Figure C
2. Governance
The WooDao is another core element in the Woo Network. The WooDao has grown to a multi-million dollar treasury that has been managed within a discord chat. The WooDao has been able to partner with many well-known entities in crypto all through the governance process. They have been able to accomplish the: (1) Launch Woo Financial NFT by partnering with Binance NFT marketplace. (2) Provide liquidity for $WOO and $NEAR in Ref Finance to support $WOO liquidity in the $NEAR ecosystem. (3) Made $WOO one of the deepest pools in Bancor, and soon to become one of the multi-sig signers on the Bancor DAO. WooDao also contributes to grants, ongoing compensation to contributors, and bounties that all benefit the WooDao, Woo Network, or the public good. More on the WooDao may be learned here.
Additional Information-
Staking
$WOO token holders may contribute to the network by staking. Staking rewards are 1.43% APR weekly and have no minimum requirements of tokens with a lock-up period of 7 days. An additional monthly reward of 100k $WOO is shared by stakers across all blockchains, more on that here. Currently, 36.87% of all circulating supply is staked and there are over 20,000+ unique token holders according to Etherscan and CoinGecko. Just like any other staking consensus, staking rewards diminish as more and more people join the network.
Figure D
2. Technical Analysis
Figure E
$WOO has had an amazing run from $.02 to $1.78 yielding ~88x returns. Ever since $WOO hit all-time-highs, we have seen the price fall and start going sideways. Price is likely to consolidate before making a new move. The way the correction subdivides will give hints on how the next move plays out. Bottom structures typically take a long time to form and reverse when the bears are exhausted, so it's best to stay patient for a clear pattern. It is possible to sweep the lows at $.06 for a capitulation wick. All in all, the price action of this chart is very bullish over the long term, and holding above the capitulation zone will be crucial.
Conclusion
The founders of Kronos Research founded Woo Network to solve a problem they encountered. Sourcing deep liquidity. Being that Kronos Research traded billions of dollars daily they needed an exchange that can handle their throughput. That is what makes me bullish on Woo Network. They are solving their problem, so they know exactly what they need to make sure it's successful. Not only are they solving their own problem, but they have been able to tap into many other ecosystems and partner with well-known entities per figure b. Another thing, that I really like is how the tokenomics are similar to $BNB in some ways. There is a constant burn taking place for the $WOO token each month which will incentivize holders. The burn structure is reliant on the business of Woo Network and it seems like they have no competitors at the moment for sourcing deep liquidity across CeFi and DeFi exchanges. This makes me very bullish on what's to come to the Woo Network, however, it doesn’t mean it’s correlated to the value of $WOO.
