- Bitget has promised compensation to users after a surprise BGB crash.
- Efforts are ongoing to establish the catalyst for the flash crash.
- Bitget CEO Gracy Chen has reiterated the strength of the exchange.
The crypto market is known for several things, one being high volatility. In the latest instance highlighting this trait, BGB, the native token of leading crypto exchange Bitget, experienced a flash crash that saw its price drop over 50% from $1.2 to lows of around $0.53 within 15 minutes before just as quickly surging to stabilize above the $1 price point, in a move potentially triggering losses for traders in open positions. Following the market event, the exchange has outlined a compensation roadmap and next steps.
Bitget’s BGB Traders to Get Compensation
Bitget has promised to fully compensate BGB traders who may have taken losses in the recent flash crash. “Bitget will fully compensate for any asset losses,” a Monday, October 7 announcement from the company read.
In line with this plan, the firm promised to release a compensation plan within 24 hours and complete the compensation process within 72 hours.
Meanwhile, the exact catalyst for the recent flash crash remains unclear at the time of writing. Bitget CEO Gracy Chen noted that the situation was still being investigated in a separate statement while reiterating the exchange’s assurances of compensation.
Chen also tried to assure users that Bitget had no issues, reiterating the exchange’s recent achievements and noting that the exchange had a 176% reserve ratio. Interestingly, the exchange reported this reserve ratio at 166% at the end of September 2024.
Bitget Riding on a High
Along with surging crypto asset prices in the past year, Bitget has experienced significant growth, with its user base tripling from a reported 15 million in Q3 2023 to over 45 million in Q3 2024.
With this surge in users has also come a rise in volume. In Q1 2024 alone, the exchange reported a staggering $1.4 trillion in futures trading volume and an equally impressive $160 billion in spot trading volume.
Meanwhile, the company’s growth has not been limited to the exchange platform. In August 2024, Bitget Wallet reported that it had surpassed 30 million users.
On the Flipside
Why This Matters
Flash crashes like the one experienced by Bitget’s BGB can easily cost several traders millions of dollars in liquidations. Bitget’s decision to cover user losses brings respite to any affected trader while highlighting the exchange’s commitment to its users.
Read this for more on Bitget:
Bitget Wallet Adds AI-Powered Grass for Passive Rewards
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