More and more leading crypto firms aim to help traders and crypto-related projects affected by the collapse of FTX.
ByBit, a cryptocurrency derivative margin trading platform established in 2018, has launched a $100 million support fund for institutional traders.
According to the announcement shared on November 24th, the fund is available to market makers and high-frequency trading institutions dealing with certain financial issues.
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Institutional investors can receive the support of around $10 million per client. However, ByBit emphasized that each case will be analyzed based on “individual requests and approval.” In order to receive the funding, institutional traders have to be active on ByBit or other cryptocurrency exchanges.
It is worth noting that ByBit promised to distribute funds at a 0% interest rate. In the announcement, ByBit also added that received funds should be used for spot or Tether (USDT) “Perpetual trading on Bybit.”
In the announcement, when talking about why the company decided to launch a support fund, ByBit stated that it aims to “tide institution traders through the storm,” adding:
The last two weeks have sent shockwaves across the crypto industry following the FTX saga. Traders and organizations alike have been negatively affected, plagued by financial and/or operational difficulties. As a leading crypto exchange, we feel for and empathize with these challenges.
On November 11th, cryptocurrency exchange FTX and 130 companies in FTX Group started Chapter 11 bankruptcy proceedings.
ByBit is not the only company lending a helping hand to companies affected by the FTX collapse. The largest crypto exchange in terms of daily trading volumes, Binance, has launched a Web3 Industry Recovery Initiative (IRI) aiming to provide financial support to Web3 projects that are facing liquidity issues.