Bitget Token Tumbles 52% on ‘Market Sluggishness,’ Exchange Says, While Promising Compensation

As a seasoned crypto investor with over a decade of experience in this wild and unpredictable market, I’ve learned to expect the unexpected – flash crashes, sudden rallies, and everything in between. The recent plunge of the Bitget Token (BGB) was yet another reminder that even the most resilient coins can take a hit.

Bitget, the digital currency trading platform, pledged to reimburse holders of their native Bitget Token (BGB) for any losses incurred, which reached a maximum of 52%, on a particularly challenging day on Monday.

At approximately 02:30 UTC, BGB experienced a sharp drop from $1.14 down to as low as $0.54 within just 15 minutes. Data on TradingView reveals this decline. However, the currency quickly recovered and rose back up to $1.04 before settling around $1.06 in recent trading.

Rapid drops in cryptocurrency values, known as flash crashes, aren’t uncommon. It can be challenging to pinpoint the reasons behind a sudden surge of sellers holding a particular asset. In the case of BGB, it appears that the primary factor causing its decline was a general market slowdown due to holidays and Golden Week in Asia, along with other contributing factors, according to Ryan Lee, chief analyst at Bitget Research, via email.

According to a recent statement from Bitget, individuals who experienced losses due to the drop in value will receive a full reimbursement. The company has promised to develop a compensation plan within 24 hours, with repayments being processed and completed within 3 business days.

In any investment, temporary drops in value are common… However, even though BGB experienced a short-term dip, it swiftly recovered, demonstrating its robustness and the faith our community places in its long-term growth prospects, as stated by Lee.