Crypto derivatives exchange Bybit has launched a new support fund to help institutional traders access liquidity in the wake of the FTX collapse – an event that has triggered a new wave of panic selling in the digital asset space.
A $100 million support fund is available to market makers and high-frequency trading institutions experiencing financial or operational difficulties after FTX collapse earlier this month, Bybit published on November 24. Funds will be distributed to eligible applicants at a 0% interest rate.
To be eligible, institutional traders must be active on Bybit or other exchanges. The maximum amount distributed per applicant is $10 million and the funds must be used on spot and Tether (USDT) forever trading on Bybit.
Once the second largest cryptocurrency exchange in the world, FTX filed for Chapter 11 bankruptcy On November 11, after a coordinated bank run revealed that the firm was insolvent. The scandal followed after it was revealed that he was CEO Sam Bankman-Fried merger of funds between FTX and sister company Alameda Research, which led to an 8 billion hole in FTX’s balance sheet. As reported by Cointelegraph, Top 50 FTX Lenders owes more than $3 billion.
Several companies exposed to FTX have reported financial and liquidity constraints due to his collapse. Bitcoin (BTC) lender BlockFi is considering bankruptcy, while Digital Currency Group-backed Genesis Global Trading recently stopped making new loans.