Gate.io has committed $100 million to revive cryptocurrency and restore confidence among investors.
Concerns about the market's liquidity pose an immediate risk to crypto firms that are already having a hard time making ends meet. Investors are shifting their cash out of exchanges and into self-custody.
The cryptocurrency exchange Gate.io has established (1) an industry liquidity support fund, including an initial commitment of $ 100 Million, to mitigate the negative effects of a bearish trend and the breakdown of ecosystems.
Concerns about market liquidity pose an immediate risk to crypto firms already having difficulty making ends meet. Investors are shifting their cash away from exchanges and into self-custody. Gate.io's investment of $100 million is to assist businesses in strategically repositioning themselves and adjusting to shifting market conditions.
With the help of liquidity support, cryptocurrency entrepreneurs will be able to keep their attention on running their enterprises while also being shielded from the risks posed by the market. It was said in the announcement that.
“The $100 million will be allocated to high-quality projects, market makers, high-frequency traders, and other institutional clients and HNW individuals.”
The primary purpose of the up to $10 million in funding that will be allocated to eligible cryptocurrency initiatives is market-making, also known as the provision of liquidity for traders.
The organization will consider applications indefinitely and make decisions regarding the size of the fund based on future market trends. Lin Han, the CEO, and founder of Gate.io, made the following statement in this regard:
“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.”
Additionally, the Gate SAFU fund, which Gate.io established in 2019, continues to serve as a safety net and insurance pool for the assets of user accounts.
Binance Already Lending $ 1 Billion Support
Binance, a cryptocurrency exchange, has also acknowledged that it is responsible for assisting the ecosystem in surviving volatile market conditions.
Recently, the CEO of Binance, Changpeng Zhao, made public the company's intentions to contribute $1 billion to an industry recovery fund (2). The purpose of the planned recovery fund by Binance is to offer financial assistance to promising projects experiencing financial difficulty.
CZ emphasized intentions to employ a very "loose" structure by allowing diverse sector colleagues to participate in the fund. While Binance has not formally announced the fund's creation, the fund is expected to be launched soon.
