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Gate.io pledges USD 100 mln to support the crypto ecosystem

Wednesday 7 December 2022 14:46 CET | News

Global digital asset exchange Gate.io has pledged USD 100 million as part of a liquidity support fund that aims to revive the crypto industry.

 

Gate.io is trying to minimise the negative impacts of a bear market and ecosystem collapses, both of which have prompted investors to move their funds away from exchanges into self-custody. Furthermore, in order to address market liquidity concerns, the fund aims to support companies that are looking to adapt to changing market conditions. 

According to Gate.io representatives cited by cointelegraph.com, the USD 100 million will be allocated to high-quality projects, market makers, high-frequency traders, and other institutional clients and HNW individuals. They also emphasised that this is a time to work together on rebuilding, protecting users, and fortifying the market. 

Crypto projects that prove eligible will benefit from up to USD 10 million for market-making. There is no deadline for applicants at the time of writing, and Gate.io is open to adding even more funds depending on future market trends. In 2019, the global asset exchange launched the Gate SAFU fund, which acts as a safety net and insurance fund for user assets. In November 2022, the company also introduced a dedicated page for the fund to educate users about its purpose. 

According to wikibit.com, the Gate SAFU fund is valued at over USD 100 million, it was built using the revenue generated from trading fees on the platform, and it consists of a variety of stablecoins and other digital assets.

 

Global digital asset exchange Gate.io has pledged USD 100 million as part of a liquidity support fund that aims to revive the crypto industry.

 

Binance also commits USD 1 billion to a cryptocurrency recovery fund 

In November 2022, Blockchain and cryptocurrency infrastructure provider Binance has revealed plans to commit USD 1 billion to a cryptocurrency recovery fund. 

The announcement is related to the FTX collapse, as the Bahamas-based cryptocurrency exchange has filed for Chapter 11 bankruptcy protection in the United States. This unexpected move raised some serious questions about the industry's continued ability to draw investments from venture capital and private equity firms.  

The USD 1 billion proposed by Binance would help support an industry recovery initiative (IRI) to invest in companies from the digital assets sector, particularly those that might end up facing a liquidity crisis. Depending on the need, Binance also expressed its readiness to increase this commitment to USD 2 billion. 

According to techinasia.com, due to the FTX collapse, users are losing trust in centralised custodial platforms, which has resulted in an industry-wide flight of capital from all major centralised exchanges and a decline in trading volume. As far as regulation is concerned, some regulatory bodies have called for an increase in regulation for some crypto markets. For instance, the International Monetary Fund has recently proposed an increase in regulation and better consumer protection in Africa’s cryptocurrency market.


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Keywords: funding, digital assets, cryptocurrency, blockchain, cryptocurrency exchange
Categories: DeFi & Crypto & Web3
Companies: Gate.io
Countries: World
This article is part of category

DeFi & Crypto & Web3

Gate.io

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