A Seychelles-based cryptocurrency exchange, OKX has announced that it will establish a $100 million market recovery fund to assist the industry that is clearly having a negative impact as a result of the failure of the FTX.
In accordance with the Chinese reporter Colin Wu, OKX will disburse $100 million to a variety of projects with serious problems following the demise of major projects and significant price crashes this year. Additionally, it will facilitate the transfer of entities from Solana which actually suffered heavily in the past days.
It is important to look at the fact that on November 14, Binance CEO Changpeng Zhao announced that his company would be forming an industry recovery programme in an effort to mitigate the “cascading” negative effects of FTX’s demise and was joined by crypto exchanges Huobi Global and Poloniex.
OKX claimed that significant losses and a dearth of market makers came from the bankruptcies of Alameda Research and FTX. Because of the potential for “pump and dump” schemes to be initiated by such occurrences, such funds are essential.
In a statement, the world’s ninth-largest crypto exchange in terms of trading volume stated that “having been in the industry for almost a decade, healthy development for all projects and ecosystems is of utmost importance to OKX.”
OKX further stated that “the company will therefore provide resources and integration support to high-quality projects, alongside provision of technical, liquidity, and other necessary support.”
OKX Plans Expansion
Only a few days before FTX’s problems started, OKX announced that it would follow the now bankrupt crypto exchange in an effort to get itself a digital asset license in the Bahamas, where it expected to hire up to one hundred individuals over the course of the next twelve months. The exchange entity based in the Seychelles claimed that it will utilize the new license to onboard consumers, and it would begin with clients from the Mexican market.