Following the footstep of Binance, Cryptocurrency exchange Gate.io established an industry liquidity support fund with a $100 million initial commitment.
Market liquidity concerns are an immediate threat to struggling crypto businesses as investors shift their funds away from exchanges and into self-custody. The $100 million commitment from Gate.io is intended to help companies restructure and adapt to changing market conditions.
The liquidity support aims to assist crypto businesses in remaining focused on their operations while being protected from market volatility.
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 cryptocurrency projects will receive up to $10 million in funding, primarily for market-making, or providing liquidity to traders. The company has not set an application deadline and hopes to expand the fund based on future market trends.
Crypto exchange Binance has also taken up the mantle of helping the ecosystem survive uncertain market conditions.
Most recently, Binance CEO Changpeng Zhao revealed plans to allocate $1 billion for an industry recovery fund.
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