Cryptocurrency exchange Bitget has pledged to fully compensate users affected by an unexpected price volatility of its native token, BGB.
The announcement comes in response to a sudden price dump that saw BGB’s value plummet for a brief period of time.
BGB price drops by almost 44%
On October 7, 2024, at 2:53 AM (UTC), the BGB price fluctuated abnormally for approximately ten minutes. During this brief period, the token’s price dropped from a high of $1.14 to a low of $0.6441.
The drop was a considerable 43.5% decline without any valid reason. However, the price quickly rebounded, and BGB is currently trading at $1.06.
In a response to the incident, Bitget issued a statement acknowledging the unexpected volatility and its potential impact on users.
$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
Bitget’s response and compensation plan
The exchange has committed to fully compensating any asset losses incurred during the event. Bitget plans to announce a detailed compensation plan within 24 hours of the incident. The exchange also aims to complete the entire compensation process within 72 hours.
Bitget announced: “It always prioritizes user asset security, and we will continue to optimize margin position levels, risk management measures, and liquidation mechanisms to ensure a safer and more stable trading environment for you.”
In light of the incident, Bitget has announced plans to enhance its risk management protocols. The exchange will focus on optimizing margin position levels, improving risk management measures, and refining liquidation mechanisms.
Bitget CEO also issued a statement following the incident. Gracy assured that they will not let any Bitget user suffer losses. She also added that there are no issues with Bitget.
Gracy highlighted the exchange’s global market share, which stood at 11% at the fourth ranking in Q4 2024. She also mentioned that their asset reserve exceeds 176% and that they have the second-largest protection fund.
However, this was not the first time that such a price dump has happened with an exchange token. OKB token saw a similar price drop on July 5 and January 23, when the prices plunged to a low of $25 from $48.
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