Crypto-exchange Bitget has established “Builders Fund,” a $5 million fund to help traders and partners of FTX, which collapsed in recent weeks.
Bitget announces “Builders Fund” in support of FTX’s bleeding partners
Bitget announced “Builders Fund,” a $5 million fund to support FTX’s loss-making partners and traders after it collapsed in recent weeks.
As a builder in the #crypto community, #Bitget is proud to present a 5 million USD “𝐁𝐮𝐢𝐥𝐝𝐞𝐫𝐬 𝐅𝐮𝐧𝐝” to help the partners and traders affected by the FTX event.
Please see the requirements for application here – https://t.co/W3ZI9813Oy pic.twitter.com/paN7b3W2To
— Bitget @TOKEN2049 London (@bitgetglobal) November 14, 2022
“As a builder in the #crypto community, #Bitget is proud to present a 5 million USD “𝐁𝐮𝐢𝐥𝐝𝐞𝐫𝐬 𝐅𝐮𝐧𝐝” to help the partners and traders affected by the FTX event.”
In essence, the new fund is meant to be supportive of the crypto community that suffered losses after the negative events that happened with FTX.
To apply for aid amounts, Bitget has set requirements, which are:
- be a partner with an affiliate account with FTX;
- have more than 50,000 USDT in assets or a monthly transaction volume of more than 10 million USDT (including spot and futures) at FTX in the past 30 days.
Thus, only those in either category will be eligible to join Bitget’s new Builders Fund.
The collapse of FTX
Bitget’s intervention comes after the infamous collapse of FTX’s platform during the past week, with withdrawals and deposits suspended indefinitely.
A situation that has alarmed traders, especially also due to the deafening silence of FTX CEO Sam Bankman-Fried, who has been totally absent on Twitter for days. Not only that, Bankman-Fried also reportedly deleted tweets of his own from last Monday in which he claimed that the company had all the funds on hand to meet their clients’ withdrawal requests.
In general, when a trading platform blocks withdrawals, it means that bankruptcy is most likely already in place.
And indeed, the Bahamas Securities and Exchange Commission has reportedly already publicly launched an investigation against FTX’s on-site subsidiary, FTX Digital Markets, freezing all funds.
Bitget also supports USDT traders
Bitget’s choice to include USDT holders in its fund candidates stems from the collapse the asset has suffered as a result of FTX events.
And indeed, the quintessential stablecoin, Tether (USDT) fell 1% during those days of market turbulence, below its peg to the US dollar.
Something that then affected the entire crypto market, such as Curve, which, having 82% of the pool in USDT, found itself with less liquidity and, therefore, unbalanced.
Not only that, some sources said that Tether had to freeze 46 million USDT held by FTX, following a request from law enforcement.
