In order to mitigate the negative effects of a bear market and ecosystem collapse, the exchange Gate.io has launched a liquidity support fund for the sector with an initial amount of USD 100 million.
With investors moving their funds off exchanges and into self-custody, concerns about market liquidity are an immediate threat to struggling crypto firms. Gate.io’s $100 million commitment aims to support companies looking to restructure and adapt to changing market conditions.
Liquidity support aims to help crypto companies keep their focus on their business while protecting themselves from market uncertainties. The ad read as follows:
“The $100 million will go to high quality projects, market makers, high frequency traders and other institutional clients and high net worth individuals.”
Eligible projects will receive funding of up to USD 10 million, mainly for market making, that is, to provide liquidity to traders. The company has not set a deadline for applicants and expects to expand the fund based on future market trends. In this regard, Lin Han, founder and CEO of Gate.io, stated:
“Unforeseen obstacles during the bear market should not negatively affect users and inhibit innovation. Now is the time to work together to rebuild, protect users and fortify the market.”
Also, The Gate SAFU fund, created by Gate.io in 2019, continues to provide a layer of security and an insurance fund for user assets.
exchange Binance has also taken on the responsibility of helping the ecosystem survive uncertain market conditions.
Recently, Changpeng Zhao, CEO of Binance, revealed his plans to allocate $1 billion to a sector recovery fund. Binance’s proposed recovery fund aims to provide financial support to promising projects in financial distress.
Although Binance has yet to officially announce the launch of the fund, Changpeng Zhao highlighted plans to adopt a relatively “flexible” structure by allowing different industry peers to contribute to the fund.
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