Gate.io, a cryptocurrency trading platform, has unveiled an industry liquidity support fund with an initial commitment of $100 million to help revive the crypto industry.
The FTX collapse has battered the cryptocurrency industry with investors steering clear of digital assets, several crypto companies on the brink of bankruptcy and customers losing billion of dollars of funds. Uncertainty prevails as crypto prices continue to decline. The fallout effects from the FTX debacle has reverberated through the entire crypto ecosystem with prominent companies such as BlockFi and Genesis succumbing to the pressure.
$100M Support Fund to Rebuild Crypto
We are proud to launch the Industry Liquidity Support Fund with an initial commitment of $100 Million to support the #crypto industry stakeholders.
— Gate.io (@gate_io) December 6, 2022
In the latest development, crypto exchange Gate.io chimed in to the tune of Binance launching a $100 million industry recover fund to support firms grapping with liquidity crisis. The liquidity support fund will aim to provide funding of up to $10 million equivalent token funding support for each customer that will be based on their individual preferences.
Moreover, the recovery fund will have no deadline for applicants and an individiual can expand the amount at any time based on future market trends. Gate.io wrote,
“We welcome all industry participants to join so that we can work together to help revive the crypto industry.”
According to an official blogpost, the fund will be open to all market makers, high-frequency trading institutions, high-quality listing projects, and other institutional clients or High Net Worth (HNW) individuals. It can be further used for market making and trading in Gate.io’s spot and futures markets.
Unity is Strength
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
Funds seem to pour in as recently crypto derivatives exchange Bybit also introduced a support fund of $100 millio to market makers and high-frequency trading institutions struggling with financial difficulties following the collapse of Sam Bankman-Fried’s FTX Empire. Even, Binance CEO Changpeng “CZ” Zhao revealed plans to allocate $1 billion to strengthen and rebuild the crypto industry.
Zhao urged other industry players with cash who want to co-invest are welcome to support the project. In response, Tron founder Justin Sun expressed his support for Binance’s new initiative highlighting that his two exchanges, Huobi Global and Polonie would also take an active participation in the recovery fund.
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 14, 2022
Meanwhile CZ emphasized that Binance is also anticipating to set up a global cryptocurrency association that intends to uphold stingent industry standards. The Binance boss also called for new but stable and clear regulations for the entire crypto industry.