Crypto exchange Gate.io has launched an industry liquidity support fund with an initial commitment of $100 million.
Crypto exchange Gate.io has established an industry liquidity support fund with a $100 million initial commitment in an effort to mitigate the negative effects of the bear market and recent ecosystem collapses.
Market liquidity is an immediate threat to struggling cryptocurrency businesses as investors shift their money away from exchanges and into self-custody. Gate.io’s $100 million commitment aims to assist businesses that want to reassess their strategies and adjust to shifting market conditions, enabling them to keep their focus on their operations while being shielded from market risks. The announcement reads :
“The $100 million will be allocated to high-quality projects, market makers, high-frequency traders, and other institutional clients and HNW individuals.”
Up to $10 million will be invested in eligible cryptocurrency projects, with the main goal of providing liquidity for traders through market-making. The business has not set a deadline for applications and intends to increase the fund in accordance with future market trends. Gate.io’s CEO and founder, Lin Han, said:
“Unforeseen hurdles during the bear market shouldn’t adversely affect users and inhibit innovation. Now is the time to work together on rebuilding, protecting users, and fortifying the market.”
The Gate SAFU fund, which Gate.io established in 2019, also continues to act as a security net and insurance fund for user assets. Binance, a cryptocurrency exchange, has also stepped up to the plate to support the ecosystem during volatile market conditions.
Changpeng Zhao, CEO of Binance, recently disclosed plans to set aside $1 billion for an industry recovery fund. The proposed fund aims to give money to promising projects that are struggling financially.
Although Binance has not yet made an official announcement about the launch of the fund, CZ highlighted plans to use a structure that is relatively “loose” by allowing various industry peers to contribute.
