Seychelles-based crypto exchange Bitget has promised to fully compensate users impacted by an unexpected 53.5% price drop in its native token, BGB. According to data from the platform’s price chart, the crypto’s value plummeted from $1.14 to $0.53 within a brief six-minute window.
The unexpected plunge in BGB’s value left users speculating about what caused it, especially those negatively affected by it. Incidents like this are often the result of internal and external factors, such as liquidity issues, manipulation, large-volume sell orders, regulatory changes, and exchange-related events.
Bitget Pledges Compensation
Hours after the incident, Bitget issued a statement via its official X (formerly Twitter) post, attributing the unexpected price plunge to market conditions. The exchange assured users that the native token’s price had stabilized.
Bitget apologized for the incident and pledged to compensate affected users. The exchange assured its community that a detailed plan would be released within 24 hours, and reimbursement would be completed within 72 hours.
Following the announcement, the exchange CEO, Gracy Chen, stated that the incident is still under investigation and there are no issues with the platform. The executive claims Bitget’s asset reserve exceeds 176%, and the exchange has the second-largest protection fund globally.
Bitget’s financial strength has been seen in past reports. Last month, the crypto exchange injected $30 million into The Open Network (TON) blockchain in collaboration with the Web3 venture capital Foresight Ventures to foster Web3 adoption on the layer-1 network.
Meanwhile, the exchange has not revealed the total number of affected users or details regarding its compensation plan. However, affected users now look forward to being reimbursed.
At press time, the BGB token was trading at $1.06, a 100% increase from its day low of $0.53.
Not the First
On January 23, crypto exchange OKX’s native token, OKB, experienced a sudden 50% drop in three minutes due to abnormal price fluctuations. The token’s price plummeted from $50 to $25 before stabilizing at around $48.
The volatility led to automatic liquidations of numerous margined positions. Like Bitget’s response, the OKX team developed a compensation plan for affected users.
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