Gate.io pledges $100M to revive crypto and rebuild investor confidence
In a move to tone down the negative impacts of a bear market and ecosystem collapses, crypto exchange Gate.io launched an industry liquidity support fund with an initial commitment of $100 million.
With investors moving their funds away from exchanges into self-custody, market liquidy concerns are an immediate threat to struggling crypto businesses. Gate.io’s $100 million commitment aims to support companies looking to restrategize and adapt to changing market conditions.
The liquidity support aims to help crypto businesses maintain their focus on their business while being protected from market uncertainties. The announcement read:
“The $100 million will be allocated to high-quality projects, market makers, high-frequency traders, and other institutional clients and HNW individuals.”Eligible crypto projects will receive funding up to $10 million, primarily for market-making, i.e., providing liquidity for traders. The company has set no deadline for applicants and hopes to expand the fund based on future market trends. In this regard, Lin Han, Founder and CEO of Gate.io, stated:
“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.”In addition, the Gate SAFU fund, created by Gate.io in 2019, continues to provide a security blanket and insurance fund for user assets.
Related: Blockstream raising funds for mining at 70% lower company valuation
Crypto exchange Binance, too, has taken up the responsibility to help the ecosystem survive uncertain market conditions.
Most recently, Binance CEO Changpeng Zhao revealed plans to allocate $1 billion for an industry recovery fund. Binance’s proposed recovery fund is aimed at providing financial support to promising projects in financial distress.
While Binance is yet to officially announce the fund’s launch, CZ highlighted plans to adopt a relatively “loose” structure by allowing different industry peers to contribute to the fund.