Bitget Promises Compensation for Affected Users After 50% Token Price Drop

Popular crypto exchange Bitget is set to compensate users who are impacted by the unexpected 50% drop in its native token, BGB.

On Monday, October 7 (at 2:53 AM UTC), BGB experienced a severe price drop for approximately 10 minutes. During this time, the token fell from a height of $1.14 to as low as $0.6441. However, it soon recovered most of its losses and traded at $1.06.

Bitget to Compensate Impacted Users

Shortly after the incident, Bitget announced via X its promise to compensate users for losses suffered during the 10-minute severe price fluctuation. As part of this, the crypto exchange pledged to provide a compensation plan within 24 hours and complete the compensation process within 72 hours.

$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

Moreover, Bitget stated that it will optimize margin position levels and implement risk management measures and liquidation mechanisms to provide a “safer and more stable trading environment” for users.

Investigation Ongoing

While the exchange has plans to compensate users, it has yet to identify the actual cause behind the severe price fluctuation. In a separate tweet, the exchange said it is “fully investigating” the cause and will provide feedback to users “as soon as possible.”

Bitget CEO, Xie Jiayin, also commented on the development, reassuring users that the exchange will investigate the cause of the volatility and compensate users.

“Bitget will formulate a compensation plan for users affected by this incident. We are doing fine and are thankful that we were not led astray. If it is convenient, I would also like to ask everyone to help me appease the users in your community,” she said on X.

She assured everyone that Bitget is healthy, as the exchange’s global market share is 11%—currently fourth in the world. According to Xie, the company’s asset reserve surpassed 176%, making it the second largest protection fund behind crypto exchange Binance.

Notably, this is not the first time an exchange’s native token will witness such unprecedented price fluctuation. On July and January 23, OKX‘s native token, OKB, fell from $48 to as low as $25.