Bybit launches $100M support fund for institutional traders

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Cryp­to deriv­a­tives exchange Bybit has launched a new sup­port fund to help insti­tu­tion­al traders access liq­uid­i­ty in the wake of the FTX col­lapse — an event that trig­gered a fresh wave of pan­ic sell­ing across the dig­i­tal asset space.

The sup­port fund, val­ued at $100 mil­lion, is avail­able to mar­ket mak­ers and high-fre­quen­cy trad­ing insti­tu­tions strug­gling with finan­cial or oper­a­tional dif­fi­cul­ties fol­low­ing the col­lapse of FTX ear­li­er this month, Bybit dis­closed on Nov. 24. The funds will be dis­trib­uted to eli­gi­ble appli­cants at a 0% inter­est rate. 

To be eli­gi­ble, insti­tu­tion­al traders must be active on Bybit or oth­er exchanges. The max­i­mum amount dis­trib­uted per appli­cant is $10 mil­lion and the funds must be used for spot and Teth­er (USDT) per­pet­u­al trad­ing on Bybit. 

Once the sec­ond-largest cryp­tocur­ren­cy exchange in the world, FTX filed for Chap­ter 11 bank­rupt­cy on Nov. 11 after a coor­di­nat­ed bank run exposed the firm for being insol­vent. A scan­dal ensued after it became appar­ent that CEO Sam Bankman-Fried was comin­gling funds between FTX and sis­ter firm Alame­da Research, which result­ed in an $8 bil­lion hole in FTX’s bal­ance sheet. As Coin­tele­graph report­ed, FTX’s 50 largest cred­i­tors are owed more than $3 billion.

Relat­ed: Sam Bankman-Fried still speak­ing at events and the com­mu­ni­ty is furious

Sev­er­al com­pa­nies exposed to FTX have report­ed finan­cial and liq­uid­i­ty con­straints due to its col­lapse. Bit­coin (BTC) lender Block­Fi is con­sid­er­ing bank­rupt­cy, while the Dig­i­tal Cur­ren­cy Group-backed Gen­e­sis Glob­al Trad­ing recent­ly halt­ed new loan originations. 

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