Bybit And Binance On A Mission To Save the Crypto Market With Support Funds
With the crash of the FTX exchange, retail and institutional crypto investors were shocked as to what would happen to their initial capital in the custody of several crypto firms (notably, exchanges and lenders). As a result, the FTX debacle has decreased the inflow of funds into the industry.
Binance And Bybit To The Rescue
Meanwhile, the troubled digital asset industry is about to see some relief. According to multiple reports, the world’s largest crypto exchanges, Binance and Bybit, have launched a rescue initiative to support struggling enterprises.
As investors continued to panic and start selling off their holdings, the market’s sales volumes rose in the wake of the FTX collapse. Thus, these activities worsened the sector’s liquidity crisis. With the announcement of the support fund, qualified exchanges could access the grants at zero cost.
For its part, the crypto derivatives exchange, Bybit, stated that it created the rescue fund on November 24 to support institutional traders, market makers, and trading firms experiencing financial problems.
Bybit added that the unexpected and sudden fall of the FTX Group is what motivated the $100 million funds to help struggling entities recover from the contagion.
Similarly, Binance also announced the launch of the Industry Recovery Initiative (IRI), similar to its rival, to lend a helping hand to others in the crypto ecosystem.
After the official unveiling of the IRI, Binance noted that it had committed $1 billion to the fund and a further $1 billion, which it added yesterday.
In addition, there is also an additional $50 million commitment from other industry players, including Polygon, Kronos, Jump Crypto, Brooker Group, Animoca Brands, and Aptos Labs. According to Binance, some 150 businesses have expressed their intention to join.
The IRI is like a co-investment plan open to companies looking to contribute to the success of the Web3 ecosystem. All participating parties are expected to commit funds based on their abilities.
Assessing BTC Outflow
According to Glassnode’s BTC outflow metrics, there has been a massive outflow of BTC over the past few weeks, with the FTX debacle triggering the latest outflows. The BTC outflow measures how much has been moved from the market in the past few days or weeks.
Furthermore, Glassnode noted that the value of crypto assets has plummeted as the bear trend hovers over the industry. As Binance and Bybit pump some needed capital into the market, the analytic firm believes this will probably boost investor confidence and help build liquidation.
The intervention funds from the two exchanges may be the booster for the crypto ecosystem’s bullish run in 2023.
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