Cryptocurrency exchange Bitget has announced it will fully compensate users affected by an unexpected price fluctuation of its native token, BGB, that occurred on October 7, 2024.
BGB Price Drops Nearly 44%
At 2:53 AM (UTC) on October 7, BGB experienced abnormal volatility, causing the price to fall from $1.14 to a low of $0.6441 within ten minutes—a sharp 43.5% drop. However, the market quickly recovered, and BGB is now trading at $1.06.
Bitget’s Compensation Plan
In response, Bitget issued a statement acknowledging the unexpected price movement and its impact on users. The exchange committed to fully compensating users for any losses incurred during the event, with a detailed plan to be announced within 24 hours. The compensation process is expected to be completed within 72 hours.
Bitget emphasized its priority on user asset security and outlined plans to improve risk management measures. This includes optimizing margin positions, strengthening risk controls, and refining liquidation protocols to enhance platform stability.
CEO’s Assurance and Bitget’s Market Standing
Bitget’s CEO, Gracy Chen, reassured users that no one would bear losses from the incident. She highlighted the platform’s strong market presence, with an 11% global market share as of Q4 2024, and noted that Bitget’s asset reserves are more than 176%, backed by the second-largest protection fund in the industry.
While such events are rare, this isn’t the first time an exchange token has faced volatility. Earlier in the year, the OKB token experienced similar price drops on two occasions.