Bitget To Launch Insurance Fund to Restore Traders’ Confidence
Bitget, the world's leading derivatives exchange, has launched a $200M Bitget insurance fund to protect its users' assets.
The launch of the fund took place against the backdrop of negative news related to market volatility. Several bankruptcy incidents and similar events have threatened the confidence of traders around the world, and as a result, many have had to face serious financial consequences. Although the crypto market has recently moved out of the zone of extreme fear, it remains vulnerable to FUD (fear, uncertainty and doubt) and adverse macroeconomic events in the traditional financial sphere.
The Bitget fund is currently valued at $200 million and will eventually act as a safeguard for users and the Bitget trading platform itself. The company self-finances the insurance fund and is not dependent on third-party insurers, so it can effectively cover the loss of funds by users without external bureaucracy or policy changes. Moreover, the fund is partially composed of stablecoins, which ensures the stability of the assets and will not be subject to strong fluctuations in the crypto market. In addition to launching an insurance fund, Bitget has focused on combating illegal activity and has implemented KYC and AML policies.
Gracy Chen, Managing Director of Bitget, commented on the launch of the fund:
“The protection fund will help us mitigate investors’ concerns and attract potential users. As we continue to endure the crypto winter, it is crucial that our users can rest assured that their funds are kept safe. Moving forward, as we continue our mission to drive global crypto adoption, we also make a pledge focused on creating a fair and secure digital asset marketplace with investor protection and market integrity as key priorities.”
Gracy Chen also noted that she hopes that the Bitget initiative will encourage other platforms to address the accountability and security issues in the crypto space, as well as help restore investor confidence in the industry as a whole.
Earlier, cryptocurrency trading and lending companies Celsius and Voyager Digital filed for bankruptcy, as a result of which users' assets were frozen, which caused a wave of negativity and investor fear. Both companies froze client accounts after a flood of withdrawals led to liquidity problems. Voyager was one of the links in the bankruptcy of the famous crypto hedge fund Three Arrows Capital, which failed in the bear market.
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