12-08-2022 icon

Gate.io commits $100M to strengthen digital currency and restore investors’ trust

By Lucy Adegbe

Following the downturn effect of the bear market situation arising from diverse occurrences, the digital currency trading platform Gate.oi introduced an ecosystem liquidity assistance resource, making an introductory pledge of $100 million.

Recent reports have corroborated investors’ move to transfer their holdings from trading platforms into non-custodial wallets. This implies that insolvency challenges could be a measure of concern for struggling digital currency service providers.

Gate.oi’s initial pledge is focused on assisting firms that are considering reorganization and adjustment to the unstable industry situation.

The liquidity assistance will enable digital currency firms ti to retain commitment towards their service provision while being shielded from market pressures.

According to reports, the allocation process for liquidity assistance would consider “quality  projects, market makers, high-frequency traders, and other institutional clients and HNW individuals.”

Qualified projects will be given an estimated $10 million to cover the reserves of traders. The firm has no scheduled time limit for candidates and envisions an expansion of the financing aid to align with future market movements.

Digital currency trading protocol Binance has also been reported to have committed to assisting the ecosystem amid the current market instability.

Binance chair Changpeng Zhao discussed plans to release about a billion dollars as an industry survival reserve. The suggested reserve is targeted toward assisting propitious projects that are struggling with finances.