As a seasoned crypto investor with over a decade of experience in this rollercoaster market, I must admit that unexpected drops like Bitget’s BGB token are part of the thrill and, sometimes, the frustration of this exciting journey. While it’s disheartening to see my investments plummet, I’ve learned to take such incidents in stride, knowing they often provide opportunities for future growth.
On October 7th, the value of Bitget’s BGB token experienced an unanticipated 50% decrease in the early hours, followed by a subsequent recovery.
The platform has stated that they will reimburse users for any unexpected losses due to market fluctuations, which are currently being looked into.
Exchange Promises Full Compensation
Based on information from CoinGecko, the token’s value dropped from $1.14 to $0.64 following an incident, but it soon bounced back. In a recent post on X, Bitget acknowledged the price fluctuations, attributing them to unforeseen market conditions, and stated that the price has now stabilized.
The service guarantees its customers, assuring full reimbursement for any incurred losses of assets. Moreover, they have pledged to unveil a comprehensive compensation scheme within the next 24 hours, with the entire process expected to be finalized within the following 72 hours.
Bitget CEO Gracy Chen reiterated this message in a separate X post:
Although the event remains under examination, I wish to reassure all Bitget users that no one will experience financial losses during this process.
In simple terms, Chen highlighted that Bitget continues to hold a solid position, as it reached a 11% market share worldwide during the third quarter of 2024, ranking it fourth among all global exchanges. Moreover, its asset reserve surpasses 176%, and it boasts the second-largest protection fund globally, which swiftly compensates users in case of any unfortunate incidents.
The Nature of Flash Crashes
In similar fashion to an event earlier this year involving OKB, the cryptocurrency associated with the OKX exchange, this occurrence reminds us of a sudden price plunge that took place. The token had been soaring at $48, but within hours it dropped to $25. This dramatic shift seems to have been initiated by numerous large leveraged position liquidations, which in turn sparked additional sell-offs and further price decreases.
Initially, OKX alleviated user concerns by promising to cover any losses stemming from the uncommon liquidations. Though OKB‘s downfall was tied to broader market fluctuations, Bitget is still investigating the precise reason for today’s occurrence.
In simpler terms, a “flash crash” for a cryptocurrency happens when many people sell off a particular digital currency rapidly, more than what buyers are willing or able to purchase at that moment. This sudden surge in selling causes the price to plummet significantly within a short period. However, unlike traditional market collapses, the price usually rebounds swiftly, often returning close to its original value.
Read More
- W PREDICTION. W cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- ZETA PREDICTION. ZETA cryptocurrency
- FutureNet Co-Founder Roman Ziemian Arrested in Montenegro Over $21M Theft
- AEVO PREDICTION. AEVO cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- PSP PREDICTION. PSP cryptocurrency
- VELA PREDICTION. VELA cryptocurrency
- RFD PREDICTION. RFD cryptocurrency
2024-10-07 13:30