Bybit, a cryptocurrency exchange, has established a $100 million fund to serve institutional clients “during this challenging period in the crypto industry,” as per a statement released by the company on Thursday.
Bybit revealed that it will be offering up to $10 million to both current and prospective market makers on its platform, in addition to providing everyone with a dedicated account manager.
In an effort to capitalize on the recent turbulence in the cryptocurrency market, Bybit, the 35th largest exchange by trading volume as per the CoinMarketCap, has joined Binance, the largest Global leading digital asset service provider, in an effort to try and overcome the storm.
The value of the cryptocurrency market has plummeted by two-thirds in the past year, and the business as a whole has been shaken by the exit of major market participants.
Ben Zhou, Bybit CEO and co-founder, said:
“We are all in this together, and it’s up to everyone to do what they can to support our industry and this is one way we are helping to give back.”
Bybit’s Fund Is Inspired By Market Events
Earlier this month, cryptocurrency exchange FTX filed for bankruptcy, setting off a ripple effect across the already shaky business and causing other firms to warn of severe liquidity crunches over the companies such as Genesis and BlockFi. Notably, Kraken, a prominent cryptocurrency exchange, has recently come clean about its communication with federal agencies regarding the FTX group’s bank accounts. All FTX and Alameda accounts were frozen to protect their creditors.
In an interview that took place with Bloomberg, the CEO of Binance, Changpeng “CZ” Zhao, stated that the business is aiming to raise $1 billion for a recovery fund in order to purchase distressed crypto assets. Additionally, CZ made the announcement that Binance was going to establish a recovery fund “to help projects who are otherwise strong, but in a liquidity crisis.”