Exchange for cryptocurrency derivatives Bybit has introduced a new support fund with the aim of assisting institutional traders in gaining access to liquidity in the wake of the collapse of FTX, which was an event that sparked a new wave of panic selling across the digital asset industry.
Bybit made public on November 24 that a support fund with a value of $100 million was made available to market makers and high-frequency trading institutions that were having trouble dealing with financial or operational challenges as a direct result of the collapse of FTX earlier this month. At no cost in terms of interest, the funds will be given out to those who are qualified to receive them.
Institutional traders must be active on the Bybit exchange or one of the other exchanges to be eligible. It is required that the money be used for spot and Tether continuous trading on Bybit, and the maximum amount that may be distributed to a single application is 10 million dollars.
A bank run revealed that the company was unable to meet its financial obligations, and FTX, which was formerly the second-largest cryptocurrency exchange in the world, filed for Chapter 11 bankruptcy on November 11. After it was discovered that CEO Sam Bankman-Fried was misappropriating money belonging to FTX and its sister company, Alameda Research, a controversy broke out, and FTX’s balance sheet was shown to have a gaping hole in the amount of $8 billion due to this misappropriation.
Due to the collapse of FTX, a number of firms that were exposed to it have reported experiencing financial and liquidity issues. While Genesis Global Trading, which is funded by Digital Currency Group, has stopped new loan originations, bitcoin lender BlockFi is mulling over whether or not to file for bankruptcy.
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