Gate.io, a Hong Kong-based centralized exchange, has created a liquidity support fund with an initial investment of $100 million for the crypto sector. The fund aims to help the ailing crypto industry.
At the beginning of the crypto winter period, several crypto firms went under, including major giants in the industry. However, some crypto firms survived the period unscathed.
Among them is the crypto firm, Gate.io. Presently, the crypto exchange with over 1,400 digital assets wants to restore users’ faith in the crypto exchanges.
According to Gate.io, it wants to promote steady growth and safety in the crypto sector. Gate.io’s support fund will help the crypto sector by reducing crypto users’ financial load.
This would allow them to keep investing in the sector. Meanwhile, not everyone would benefit from the liquidity fund.
Entities that would benefit from the fund include institutional clients, high-frequency traders, high-quality projects, and market makers. Those in these categories can enjoy the feature by applying for the fund.
However, the fund is not limited to Gate.io partners alone. Eligible entities from other crypto platforms. Beneficiaries of the fund can use it for several purposes, including market-making on Gate.io.
Also read:Furthermore, competitors are eligible for funding support of over $10 million. Notably, Gate.io could add to the initial investment in the future, depending on market situations.
Is Gate.io Following Binance’s Footsteps?
The crypto firm hopes to restore users’ faith and trust in the crypto sector through the latest support fund. Moreover, the funds will help rebuild the crypto sector as several firms have collapsed.
The CEO and Founder of Gate.io, Lin Han, said, “we are assisting high-quality and powerful initiatives and market facilitators so we can all continue moving blockchain technology forward together.”
Han added that unanticipated roadblocks during a bad market should not hurt consumers. According to him, innovation must continue no matter the market situation.
The CEO concluded by saying this is the moment for all parties involved to collaborate on reestablishing, safeguarding, and reinforcing the market.
Meanwhile, Gate.io’s liquidity fund is similar to the fund Binance launched last month. Amidst the FTX bankruptcy situation, Binance CEO Changpeng Zhao announced on November 14th that the exchange has launched a new fund called the “industry recovery fund.”
The fund is aimed at helping crypto firms battling liquidity issues. The fund currently has more than $2 billion.
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