Thread by @Ja_Brann

Decided to write a thread on $WOO and try to encompass all of the reasons it excites me.

There are many great threads on @wootraderS, some I reference below, but I hope that this will be a useful place for people looking into this project to help understand its potential.

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Firstly, what is $WOO?

$WOO is a deep liquidity network that empowers both CeFi and DeFi platforms and enables them to compete in term of liquidity, no matter their size, and at a low cost. Ultimately benefitting end users and the entire ecosystem as competition can thrive.

Who founded $WOO?

The WOO Network was founded by Kronos Research, one of the top quantitative trading firms in the world generating $5-15 billion in daily trading volume. They're an experienced and highly respected firm who have a long term vision for $WOO - It's here to stay.

You can find out more about @ResearchKronos in @ChainlinkoracIe's thread below, but it's safe to say $WOO is in good hands.

https://twitter.com/ChainlinkoracIe/status/1411762288382578690

So what makes $WOO an exciting investment?

First up is WooX, the ZERO fee, DEEP liquidity CeFi exchange built on top of the $WOO network. Users can access zero fee trading with some of the best liquidity in the market.

Zero fees attracts everyone from the smallest of traders to the largest. Ultimately, money talks. When you can trade for fee on WooX, saving large traders millions of $ a year, why trade anywhere else?

The chart below shows how much active traders would save in a year on WooX.

But wait! $WOO is not simply about WooX. In fact currently, since it's in beta, WooX only makes up a tiny fraction of $WOO's volume. As you can see, institutional clients and the WooFi DeFi network makes up a huge portion of volume, which highlights the scale of this project.

So if trading is free, how does $WOO make money?

Instead of charging end users fees, $WOO generates revenue from market makers (MMs). MMs offer significant rebates to Wootrade in exchange for providing order flows, a proven revenue model in traditional finance.

And the best part?

Wootrade then uses FIFTY PERCENT of their revenue to buy back $WOO tokens on the open market and BURN them on a monthly basis. 7.7m $WOO has been burnt so far, with 764k burnt in May alone, with WooX still in closed beta. As $WOO grows, so does the burn... 🥵

This means $WOO has a deflationary token model - Supply reduces over time, increasing price. In addition, with 50% of the total supply being used for ecosystem rewards, and 20% going to the team, vested over 3.5 years, the tokenomics are some of the best I've seen.

Not only will $WOO be deflationary, tokens will become scarce very quickly. That's because in order to gain completely free trading, users need to stake $WOO, locking up tokens. Institutions alone are estimated to stake 500m $WOO in the first year, 80% of circulating supply!

This means that as more tokens are staked, earning a yield for stakers (currently ~5% APY) , the amount of tokens on the open market actively reduces. This creates immense buy pressure, as people wanting to buy $WOO will be competing for fewer tokens. #Few

Another aspect of $WOO is Woo Ventures, set up to identify and invest in early-stage projects that provide value to $WOO and the blockchain space as a whole. So far, we know these include $DODO (@BreederDodo ) and @SynFuturesDefi, with others to come.

So why is that good for $WOO holders?

Not only is Woo Ventures investing in promising projects that could provide value to $WOO, 50% of tokens received by Woo Ventures will be airdropped to $WOO holders! Yup - free tokens in exciting projects just for holding/staking $WOO!

If you buy $WOO, you will be investing alongside some of the most respected investors in the space, including @zhusu, @kyled116 and @novogratz to name only a few.(I wonder how many of these investors already use $WOO to trade, with tens/hundreds of billions of capital combined?)

So what's to come for $WOO?

Well, plenty of things! This quarter alone, WooX will be fully released to the public, futures will be available, and the mobile app will launch - Each one of these is a bullish catalyst in itself, let alone all three in a short space of time.

You may have spotted Social Trading is coming in Q4. WooX will have the ability for you to copy trade some of the best traders in the world - pretty awesome huh? So awesome, @eToro built a $2.5bn company off the back of this concept alone, and this is just one aspect of $WOO!

Before I touch on valuation, I wanted to mention one last thing - the community.

$WOO has one of the strongest communities I've seen in crypto.

The team such as @BenYorke and @GGaranzaso are constantly in the discord and telegram answering questions and helping people out.

Not only that, larger accounts such as @cryptofrog202, @CryptoHunterGon and @moneywithcarter are always hanging out.

You only need to look at #HotWOOsummer, pioneered by @auponly to see how strong the community is. @Keazz91 even got a tattoo!

$WOO has never paid anyone to tweet

Ask any respected person in crypto, and they'll tell you how important community is.

It's no coincidence $LINK has one of the strongest communities and was one of the only tokens to thrive in the recent bear market.

$WOO is well on its way to building something similar.

Ok ok... Now the bit some of you have been waiting for... What's the potential valuation of $WOO?

Well first of all, I would encourage you to create your own plan when it comes to valuation and stick to it.

But these are some of the things I consider when making mine:

First, we have @ChartSimpson's long tail bull thesis for $WOO. This highlights the magnitude of the opportunity in the long run. Using various assumptions, it's easy to see how a 300x or 600x could be plausible.

But as @GGaranzaso points out, WooX is simply one source of revenue for $WOO, meaning the long term potential could even be greater than @ChartSimpson theorises...

In the near term, we know the $WOO internal team are targeting $10bn daily volume by EOY, and following the logic above, that could equate to a $10bn market cap.

None of this includes the value of the token burn, Woo Ventures, copy trading or reduced circulating supply...

With the combination of all the aspects of $WOO, each one a potentially promising investment in its own right, I hope you can see why $WOO excites me as much as it does.

As ever #DYOR, but I hope this certainly helps as a starting point.

Gonna be a #HotWOOsummer.