Two Sigma Ventures announced a $6 million seed investment round for C3.
- In a seed fundraising round headed by Two Sigma Ventures, decentralized cryptocurrency exchange C3 raised $6 million.
- With the help of C3’s model, dealers can trade cryptocurrency more reliably.
Press Release
A $6 million seed fundraising round headed by Two Sigma Ventures, the venture capital division of the quantitative hedge firm Two Sigma with headquarters in New York, was announced today by C3, a next-generation self-custodial exchange. Participants in the round included Jane Street, Hudson River Trading, Flow Traders, Jump, DRW’s Cumberland, Golden Tree, CMS Holdings, AlphaLab Capital, and C2 Ventures.
C3 is a decentralized cryptocurrency exchange that offers a self-custodial platform that is as efficient and available as centralized cryptocurrency exchanges. It was created to bring the digital asset market closer to the original idea of an open, trustless financial system. Blockchain and cryptocurrency technology originated as a system that promised authenticity, security, and transparency while attempting to overcome the shortcomings of traditional finance in the past. The last year exposed crypto’s enormous issue with the opacity of its market structure, from the collapse of large exchanges to the insolvency of yield platforms. However, the current status of the market has deviated from these principles.
What is C3?
C3 is a cutting-edge cryptocurrency exchange with a different self-custodial trading philosophy. Without putting performance or accessibility restrictions on it, the platform provides institutional and individual traders with an open and secure trading environment. With C3, customers have complete control over how their money is held and can trade using a variety of noncustodial wallets across various blockchains or through their preferred custodian, all without having to give their money over to the exchange. All of these functions help C3 achieve its goal of returning the cryptocurrency sector to its original vision of a transparent and trustworthy financial system.
The collapse of the multi-billion dollar exchange FTX owing to liquidity problems has damaged the reputation of centralized exchanges, which C3 portrays their platform as straightforward to use and transparent. According to the statement, C3 users can select how to custody their money and trade using several noncustodial wallets or through a preferred custodian instead of giving their money directly to the exchange.
The prospect for new entrants to develop a more dependable, self-custodial method of trading, utilizing the fundamental advances of blockchain technology, was highlighted by C3 co-founder Michel Dahdah in the news release. “It is obvious that the existing market structure of cryptocurrency assets is far from where it needs to be to enroll billions of users, much less entirely replace traditional financial markets,” the report stated.
Benefits of the C3 Model
Traders can trade cryptocurrencies in a trustless manner while avoiding many of the insolvency concerns that have plagued the cryptocurrency market thanks to C3’s innovative self-custodial methodology. The platform allows users to custody their cash in various noncustodial wallets across blockchains or through a selected custodian. This is a crucial distinction from conventional exchange platforms, which protect user assets internally and expose traders to unidentified counterparty risks.
Conclusion
“We have witnessed the consolidation of several services (such as custody, settlement, lending, etc.) into a small number of centralized intermediaries for many years. We believe the crypto market structure will start to look like many TradFi analogs in the coming years, in that customer funds will sit in silos where the owners prefer, and critical market functions will be segregated across many separate providers,” said Andy Kangpan. By providing a clear separation of custody from the exchange without requiring traders to give up performance or price, C3 represents a significant step in this direction.
