Besides Bybit floating the $100 million fund to support its community, the exchange has had to go the extra mile in showing its users that it is liquid, solvent, and can be trusted.
Singapore-based cryptocurrency trading platform Bybit has announced it has launched a $100 million fund to support the institutional investors within its ecosystem amidst the ongoing brimstone reigning on many by virtue of the ongoing crypto winter.
Bybit said in an emailed statement that the $100 million is designated for both its old and traders and that it will particularly be going to specialized account managers. According to the trading platform, the beneficiaries can access as much as $10 million depending on how grave their financial position is.
When FTX filed for bankruptcy earlier this month, it eroded the months of recuperation for many traders and investors, most of whom have lost funds in the crypto firms that went bankrupt earlier in the year including Celsius Network, Voyager Digital, and Three Arrows Capital (3AC) amongst others.
The FTX implosion is particularly disappointing and happened so fast that it gave investors and the broader crypto industry no time to adjust to the potential negative aftermath. With the collapse, many investors are now bound to experience more losses than they started the year with and exchanges like Bybit are trying to ameliorate the impact across the board.
“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 CEO and co-founder Ben Zhou said in the statement.
Bybit now joins the likes of Binance Exchange who have made proactive efforts to launch dedicated funds to help cater to the needs of Web3 stakeholders that are most impacted by the FTX implosion. Binance in particular launched a $1 billion recovery fund which it hopes to use to cushion the liquidity crunch most trading platforms must be experiencing at this time. Some of the funds are also dedicated toward acquisitions.
Beyond Bybit $100M Fund: Proving Trust to Customers
Besides Bybit floating the $100 million fund to support its community, the exchange has had to go the extra mile in showing its users that it is liquid, solvent, and can be trusted.
The trading platform, earlier this month, published its Proof-of-Reserve (POR) showing it has as much as $1 billion worth of Bitcoin (BTC), Tether (USDT), Ethereum (ETH), and USD Coin (USDC). The move to show its PoR is another avenue and effort made toward transparency and regaining customers’ trust at a time when most trading platforms are facing an extreme liquidity crunch.
Bybit is currently ranked as the 2nd largest trading platform for derivatives products after Binance and it has an average of $5 billion in daily trading volume. The exchange’s position in the Web3.0 ecosystem is one that has continued to be examined, and with the latest fund and transparency approach, the exchange has further solidified its position in this regard.
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