Binance moves to contain crypto market rout with $400m support plan

Binance is deploying a massive $400 million support package, targeting both retail traders devastated by liquidations and institutions starved for liquidity, in an effort to stem market panic and restore stability.

According to an announcement on Oct. 14, the world’s largest crypto exchange by trading volume is launching its “Together Initiative,” a two-pronged approach that allocates $300 million in token vouchers specifically for retail traders who suffered significant forced liquidations during peak volatility on Oct. 10 and 11.

The Binance team said a separate $100 million low-interest loan fund is being established for institutional and VIP clients facing liquidity crunches, with applications handled confidentially through dedicated account managers.

Binance’s $400m plan

Binance said users who qualify for the first part of its $400 million “Together Initiative” include those whose liquidation losses exceeded $50 and represented at least 30% of their total account value as of Oct. 9. Compensation amounts will range from as little as $4 to as much as $6,000 per user, depending on their losses.

For institutions, the separate $100 million fund operates as a confidential liquidity backstop. Access is channeled through dedicated account managers for VIP and institutional clients, emphasizing discretion and a fast-tracked response to alleviate the intense pressure on professional trading firms and market makers.

In defending the initiative, Binance struck a carefully calibrated tone, affirming that it does not accept liability for user trading losses. The exchange framed the $400 million expenditure as a strategic, albeit costly, investment in rebuilding overall industry confidence.

“Ultimately, Binance chose to invest these resources where they are most needed: with our users,” the announcement stated, acknowledging the dissenting opinions such a move would inevitably attract.

This new “Together Initiative” arrives just days after Binance unveiled a separate, more technically focused compensation plan on Oct. 11. That earlier program addressed users directly impacted by a price depeg of specific assets like USDE, BNSOL, and WBETH used as collateral, pledging to make them whole for losses incurred within a narrow 40-minute window due to what the exchange described as platform-related issues.