With investors shifting their money from exchanges to private holdings, the market’s financial crisis poses an immediate threat to struggling crypto businesses.
In an effort to mitigate the negative impact of the bear market and the environmental collapse, crypto exchange Gate.io has launched a corporate funding round with an initial investment of $100 million.
As investors shift their money from exchanges to private holdings, market capitalization poses immediate risks to the struggling crypto industry. Gate.io’s $100 million commitment aims to support companies looking to reorganize and adapt to changing market conditions.
This financial support is needed to help crypto businesses focus on their business while protecting them from market uncertainty. The statement said: “$100 million will be allocated to high-end services, retailers, wholesalers, and other companies and high-value customers.”
Qualified crypto services will receive up to $10 million in fees for trading, i.e. providing money to traders. The company has not set a deadline for applicants and hopes to expand the funding based on future market trends. In this regard, Lin Han, founder, and CEO of Gate.io, said: “Unexpected obstacles during the bear market should not negatively affect workers and prevent innovation. Now is the time to work together to rebuild, protect workers and strengthen the market.
In addition, the Gate SAFU fund, established by Gate.io in 2019, continues to provide security and insurance coverage for user assets. Crypto Exchange Binance has also taken responsibility for helping the ecosystem survive in uncertain market conditions.
Recently, Binance CEO Changpeng Zhao revealed plans to provide $1 billion in corporate recovery funds. The recovery fund offered by Binance aims to provide financial support for promising projects in financial crisis.
Although Binance is yet to announce the launch of the currency publicly, CZ emphasized its intention to achieve a “non-aggressive” process by allowing various institutional peers to contribute to the currency.
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