The CEO speaks, promises compensation

The price of Bitget’s BGB token unexpectedly dropped by 50% on the morning of October 7 before starting to recover.

The platform has announced that it will compensate users for losses resulting from the sudden volatility, which is still being investigated.

The exchange promises full compensation

According to data from CoinGecko, the incident saw the value of the token fall from $1.14 to $0.64 before making a quick recovery. In a post on X, Bitget addressed the situation, saying, “BGB experienced unexpected volatility today due to market conditions, but the price has stabilized quickly.”

The platform reassured its users, promising to fully compensate asset losses. He also announced that a detailed compensation plan would be released within 24 hours, and that the entire process would be completed within 72 hours.

Bitget CEO Gracy Chen reiterated this message in a separate X post:

“The incident is still under investigation, but I want to assure everyone affected that we will not let any Bitget user suffer losses.”

Chen emphasized that Bitget’s overall position remains strong, noting that the platform achieved a global market share of 11% in the third quarter of 2024, making it the fourth largest exchange in world In addition, it has an asset reserve of more than 176% and has the second largest protection fund in the world, designed to quickly compensate users in the event of incidents of this type.

The nature of flash locks

Meanwhile, this incident mirrors a past development that occurred earlier this year with OKB, the native cryptocurrency of the OKX exchange. The token faced sudden price collapses, falling from a high of $48 to $25 within hours. The event was reportedly triggered by several liquidations of leveraged positions, which led to further selling and price declines.

At the time, OKX responded by assuring its users that it would compensate them for the losses incurred by the unusual liquidation. Although the OKB crashes were related to market-wide volatility, Bitget has yet to identify the exact cause of today’s event.

A cryptocurrency “flash crash” occurs when multiple holders quickly sell a specific crypto asset, overwhelming buyer demand and causing the price to drop sharply in a short period of time. Unlike a typical collapse, the price usually recovers quickly, often returning to a level close to where it started.

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