Cryptocurrency exchange Gate.io has announced the launch of an industry recovery fund, following similar efforts by other exchanges.
Gate.io said its $100 million Liquidity Support Fund will be available to all industry participants. Other than “high-frequency trading institutions” [and] High-quality listing projects,” including high net-worth individuals and other platforms.
Each can apply for equivalent token funding support of up to $10 million for market making and trading on Gate.io’s spot and futures markets.
Gate.io also said that additional funds can be used freely within the scope of risk controls. The platform has not specified any time frame for the application, adding that funds may increase depending on market conditions.
Industry Recovery Fund in the Spotlight
Gate.io’s efforts follow similar industry support plans launched by other crypto exchanges in the wake of the FTX collapse. Binance launched the most high profile initiative to date, announcing it in the days following the collapse. Chief executive Changpeng Zhao said the industry recovery fund would support relatively robust projects due to FTX’s risk aversion.
Binance committed an initial $1 billion to the fund, with an option to raise another $1 billion. The largest scheme ever, it has also drawn support from other participants who have pledged $50 million between them. Meanwhile, rival crypto exchange Bybit also announced its $100 million Industry Recovery Fund.
Given these significant efforts from other industry participants, some may wonder about the intent behind Gate.io’s contribution. The platform can hope to rehabilitate its image after a recent incident involving its Twitter account.
The fraudsters managed to hack the Twitter account of Get.io and used it to promote a phishing scam. The hackers shared a link that took users to a landing page promising $500,000 USDT in rebates. Users who then link their wallet to the site will have their assets stolen by enabling hackers with access.
Gate.io later confirmed the hack and assured that it had taken quick action to fix the situation. The platform said affected users would be compensated for any losses due to the breach of its Twitter account. The launch of its recovery fund could possibly be seen as an attempt to gain some credibility in the industry.
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