Bitget has announced that it will fully reimburse users affected by the sudden 50% drop in the value of its native token, BGB, which occurred on October 7, 2024.
At around 3:45 a.m., the value of BGB plunged from $1.14 to $0.79 within minutes, causing significant concern among users. The price recovered to $1.04 after about ten minutes as the market stabilized. The cause of the sudden decline remains unknown.
$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
Following this, Bitget apologized for the inconvenience and assured users that they would be reimbursed for any losses. The exchange announced that it would release a comprehensive compensation plan within 24 hours and anticipated completing the compensation process within 72 hours.
“Bitget 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”,
the exchange stated.
While the number of impacted users and specific compensation details were not disclosed, the incident comes after BGB reached its all-time high of $1.40 in June 2024, marking a 30% decline from that peak.
Meanwhile, Bitget Wallet, the exchange’s custody division, recently introduced an official native token, BWB, along with many other offerings.
It held a subscription event for the token on May 23, 2024, and claimed that the token was going to help integrate users further into its ecosystem and give them a share in its growth benefits.
The crypto custody platform also recently launched MemeX, a new tool designed to help memecoin enthusiasts identify “high-potential memecoins” with the promise of significant returns. The new feature is a real-time discovery tool that instantly identifies and lists newly launched memecoins within the past 24 hours. It allows users to sort through the list with various parameters, including liquidity, market cap, and trading volume filters, to help them identify promising coins.
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