In the wake of the FTX crash, which brought on a new round of panic selling across the digital asset industry, Bybit has established a new support fund to assist institutional traders in gaining access to liquidity.
Following the collapse of FTX earlier this month, market makers and trading volume firms may use the $100 million support fund, according to information released by Bybit on Nov. 24. The money will be given to qualified candidates with no interest.
In a statement, Bybit stated that the $100 million is intended for both its current and future traders, with a focus on specialized account managers. Depending on how difficult their financial situation is, the beneficiaries may have access to up to $10 million, according to the trading size.
Ben Zhou, CEO, and co-founder of Bybit, said on Twitter, “We are all in this together, and it’s up to everyone to do what they can to support our industry. This is one way we are helping to give back.”
Many traders and investors lost money in the cryptocurrency companies that went bankrupt earlier in the year, including Celsius Network, Voyager Digital, and Three Arrows Capital (3AC), among others, and their months of recovery were destroyed when FTX filed for bankruptcy earlier this month.
The FTX crash is extremely disheartening because it happened so quickly that investors and the larger crypto sector could not prepare for any potential adverse effects. Many investors will undoubtedly suffer more losses as a result of the crash than they did at the beginning of the year, but with the intervention of exchanges like Bybit, the impact of the FTX crash on companies will be reduced.