Bybit, a major cryptocurrency platform, informed on Thursday that it established an institutional clients support fund worth $100 million
Bybit has established a new support fund to aid institutional traders in gaining access to liquidity following the FTX collapse, which brought on a new round of panic selling throughout the digital asset market.
Following the demise of FTX earlier this month, market makers and high-frequency trading institutions may use the $100 million support fund, according to information released by Bybit on Nov. 24. The money will be given to qualified candidates with no interest.
Institutional traders must be active on Bybit or other exchanges in order to qualify. The total amount given to each applicant is $10 million, and the money must be used for spot trading on Bybit and perpetual Tether USDT ($1.00) trading.
FTX, formerly the second-largest cryptocurrency exchange in the world, declared bankruptcy under Chapter 11 on November 11 after a coordinated bank run revealed the company’s financial instability. After it was discovered that CEO Sam Bankman-Fried had been mixing money from FTX and its sister company Alameda Research, which left an $8 billion hole in FTX’s balance sheet, a scandal broke out.
FTX owes its top 50 debtors more than $3 billion. Due to FTX’s collapse, a number of companies that were exposed to it have reported financial and liquidity issues. While Genesis Global Trading, which is backed by the Digital Currency Group, recently stopped accepting new loan applications, bitcoin BTC ($16,558) lender BlockFi is contemplating bankruptcy.