Bitget pledges compensation for BGB holders following 50% price drop

Bitget has promised to fully compensate users for their losses after its native token BGB briefly crashed by 50%.

Crypto exchange Bitget announced that it plans to fully compensate users affected by the sudden 50% price drop on its native token Bitget Token (BGB), which briefly crashed early on October 7. The token fell from $1.14 to $0.794 and remained unstable for nearly a decade. Moments before rising to $1.04 as the market stabilized.

$BGB Today it experienced unexpected fluctuation due to market conditions, but the price quickly stabilized.#Bitget will fully compensate for asset losses and provide a compensation plan within 24 hours and complete the compensation process within 72 hours. bitget… pic.twitter.com/KJD2MLO9J6

— Bitget (@bitgetglobal) October 7, 2024

In a statement on Monday, October 7, Bitget apologized for the outage and promised to cover user losses. The exchange said it will provide a detailed compensation plan within 24 hours and expects to complete the compensation process within 72 hours.

“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.”

bitget

Bitget did not disclose the total number of affected users or specific compensation mechanisms, but highlighted its ongoing efforts to improve platform stability. The cause of the crash, which occurred four months after BGB reached its all-time high of $1.48, remains unclear. As of press time, BGB is down almost 30% from its June peak.

In March, Bitget’s current CEO, Gracy Chen, said Bitcoin (BTC) could potentially reach $180,000 to $200,000 in the ongoing cycle, thanks to bullish interest from institutional stakeholders in the top cryptocurrency by market cap.