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Bitget has pledged to fully compensate users for losses after its native token BGB briefly crashed by 50%.
Crypto exchange Bitget announced plans to fully compensate users impacted by a sudden 50% price drop in its native token, Bitget Token (BGB), which briefly crashed early on Oct. 7. The token plunged from $1.14 to $0.794, remaining volatile for about ten minutes before rebounding to $1.04 as the market stabilized.
$BGB experienced unexpected volatility today due to market conditions, but the price has quickly stabilized.#Bitget will fully compensate for any asset losses, and will provide a compensation plan within 24 hours, completing the compensation process within 72 hours. Bitget… pic.twitter.com/KJD2MLO9J6
— Bitget (@bitgetglobal) October 7, 2024
In a statement on Monday, Oct. 7, Bitget apologized for the disruption and pledged to cover any user losses. The exchange said it would provide a detailed compensation plan within 24 hours and expects to complete the compensation process within 72 hours.
“We will keep optimizing margin position levels, risk management measures, and liquidation mechanisms to ensure a safer and more stable trading environment for you.”
Bitget
Bitget did not disclose the total number of users affected or the specific compensation mechanics, though it highlighted its ongoing efforts to enhance platform stability. The cause of the crash remains uncertain, occurring four months after BGB hit an all-time high of $1.48. As of press time, BGB is down nearly 30% from its June peak.
In March, Bitget’s current CEO Gracy Chen said that Bitcoin (BTC) could potentially hit $180,000 to $200,000 in the ongoing cycle thanks to bullish interest in the top cryptocurrency by market cap from institutional stakeholders.