Gate.io pledges $100M to revive crypto and rebuild investor confidence

In a move to mitigate the negative impacts of a bear market and ecosystem collapse, crypto exchange Gate.io launched an industry liquidity back-up fund with an initial commitment of $100 million.

With investors moving their funds from exchanges to self-custody, concerns about market liquidity are an immediate threat to struggling crypto firms. Gate.io's $100 million commitment aims to support companies looking to re-strategize and adapt to changing market conditions.

The liquidity support aims to help crypto companies keep their focus on their businesses while being protected from market uncertainties. The announcement said:

“The $100 million will be allocated to high-quality projects, market makers, high-frequency traders, and other institutional clients and HNW individuals.”

Eligible crypto projects will receive funding of up to $10 million, primarily for market making, i.e. to provide liquidity to traders. The company has not set a deadline for applicants and expects to expand the fund based on future market trends. In this regard, Lin Han, Founder and CEO of Gate.io, stated:

“Unforeseen obstacles during the bear market should not negatively affect users or inhibit innovation. Now is the time to work together to rebuild, protect users and strengthen the market."

In addition, the Gate SAFU fund, created by Gate.io in 2019, continues to provide a security hedge and insurance fund for user assets.

Related: Blockstream raises funds for mining at 70% less company valuation

The Binance cryptocurrency exchange has also taken on the responsibility of helping the ecosystem survive in uncertain market conditions.

More recent, Binance CEO Changpeng Zhao revealed plans to allocate $1 billion for an industry recovery fund. Binance's proposed recovery fund aims to provide financial support to promising projects in financial distress.

While Binance has yet to officially announce the launch of the fund, CZ highlighted plans to adopt a relatively “loose” structure by allowing different industry peers to contribute to the fund.