Bybit Supports Crypto Market Makers with $100m Fund

Bybit, a major cryptocurrency platform, informed on Thursday that it established an institutional clients support fund worth $100 million. According to the press release, the crypto exchange wants to offer additional protection to its customers during a 'challenging period' for the digital assets industry.

Institutional clients, as well as existing and new market makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term on Bybit's platform, will be able to obtain a maximum of $10 million. A similar decision was announced by Binance, the largest cryptocurrency exchange in the world, over a week ago. This action aims to stop the adverse effects of the collapse of FTX cryptocurrency exchange, which the entire industry is still experiencing.

"We are all in this together, and it's up to everyone to do what they can to support our industry, and this is one way we are helping to give back," Ben Zhou, the CEO and Co-Founder of Bybit, said.

Exchanges are also trying to rebuild the trust of their retail customers. For example, Bitget increased the investor's Protection Fund to $300 million after the FTX collapse, and its initial value was raised by $100 million to reassure traders.

Proof-of-Reserves to Calm the Nerves

In addition to protection funds for institutional and retail players, exchanges have begun to roll out Proof-of-Reserves (PoF) to ensure that they have enough cryptocurrency assets in their vaults to keep operations liquid and uninterrupted.

A Proof-of-Reserve (PoR) is an audit of a crypto exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term's finances run by an independent firm. Many major cryptocurrency exchanges decided to implement Proof-of-Reserves after the FTX crisis, e.g., Kraken, Binance and Crypto.com.

However, widespread panic is dominating current sentiment on crypto assets. According to a recent Glassnode report, 172,700 bitcoins are leaving cryptocurrency exchanges on a monthly basis, which is the highest rate to date. It is more than during the 2020 pandemic low and more than during the collapse of the Terra ecosystem, events that also caused far-reaching panic.