Bitget Promises to Compensate Users Affected by the 50% Drop in BGB

Bitget has revealed its users who were affected by the 50% drop in BGB will be compensated soon.

Cryptocurrency exchange Bitget has pledged to compensate its users following a 50% crash in its native token, BGB.

On Monday, the exchange released a statement to apologize for the disruption in its operation. Following the incident, Bitget announced its decision to fully cover users’ losses after the Bitget token plummeted from $1.14 to $0.794.

The token remained volatile after the crash for about ten minutes before it finally rebounded to $1.04. At press time, BGB is trading at $1.08. However, Bitget is yet to disclose the total number of users that were affected by the crash.

The exchange promised to release details of the compensation plan within 24 hours. Once this is done, it plans to finalize the compensation process within 72 hours.

In a follow-up post, Bitget assured users that it will continue to optimize margin position levels, risk management measures, and liquidation mechanisms. This ensures a safer and more stable trading environment for users.

Gracy Chen, Bitget CEO, noted that the company will not allow any user to suffer losses. Additionally, she clarified that there are no issues with Bitget systems.

The cause of the crash remains uncertain, but it comes only four months after the token reached an all-time high (ATH) of $1.48 in June. So far, BGB has dipped by approximately 30% since then.

Chen also highlighted the exchange’s global market price, which stood at 11%, has kept it as the fourth-ranking exchange in Q4 2024.

To further allay users’ fear, the Bitget executive pointed to the exchange’s asset reserve, citing that it has exceeded 176%. Bitget also claimed that it has the second-largest protection fund.

In the past, OKB has suffered a similar price volatility on two occasions. It recorded the first on January 23 when the price plunged to $48. The second price volatile streak came on July 5, when its price level dropped to $25.

Last month, Bitget secured a major sponsorship deal with the Spanish football league La Liga. The exchange became the league’s official crypto partner.

This multi-million dollar deal allowed Bitget to leverage the latter’s popularity and football fans across the globe to push global crypto adoption.

La Liga claims that the deal aligns with its ongoing technological initiatives, which include the use of Artificial Intelligence (AI), Virtual Reality (VR), and big data analytics. All these technologies are channeled towards optimizing game performance and improving fan engagement.

The partnership is a strategic push for Bitget to strengthen its brand presence across regions where football has recorded huge popularity. Its recent move to pursue a compensation plan highlights the exchange’s commitment to its users’ protection.