Bitget recently released its Protection Fund Valuation Report for January 2024, indicating a valuation of about $422 million.
According to the report, the fund reached a peak average monthly value of more than $415 million and registered an all-time high value of more than $442 million on January 9. The fund comprises two major virtual assets in varying proportions: 6,500 BTC and USDT worth $137 million.
The recent development comes amid rising concerns in the crypto space, as various exchanges and crypto firms are experiencing sudden meltdowns, leaving customers in chaotic financial situations. For instance, FTX’s collapse in 2022 led to a notable broader crypto market meltdown of more than $450 billion.
The Bitget Protection Fund is remarkable compared to its contemporaries, which have raised relatively smaller amounts. Also, several crypto firms which have experienced fund freezing, hacks, and major collapses and haven’t been able to recover are known not to have any reserved means of backing (whether autonomous or centralized).
By securing its position as one of the biggest self-insured protection funds in the market, Bitget solidifies confidence for users by providing an additional layer of security.
The exchange has explained previously that, as per a post on its blog, half of the protection fund is allocated to leading stablecoins to further protect traders from crypto market fluctuations, minimize volatility risks, and provide an extra layer of safety to maintain a balance.
The Protection Funds’ current value places the exchange on par with renowned ones like Binance, making it one of the most secure crypto exchanges in the world.
Like Bitget, Binance established its Secure Asset Fund for Users (SAFU) in July 2018 to safeguard customers’ funds. The SAFU portfolio comprised BTC, BNB, USDT, and TUSD and was worth over $1 billion, according to its opening price on January 29, 2022.
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