Bitget Token Drops 52% Amid ‘Market Sluggishness,’ Exchange Assures Compensation

Crypto exchange Bitget has pledged to compensate holders of its native Bitget Token (BGB) after a dramatic price drop of up to 52% on Monday. The token fell sharply from $1.14 to $0.54 within just 15 minutes around 02:30 UTC, according to TradingView data. However, the price rebounded, recovering to $1.04 and recently trading around $1.06.

While sudden crashes in the crypto market aren’t uncommon, they can be difficult to explain. In the case of BGB, the steep decline was likely triggered by “overall market sluggishness,” according to Ryan Lee, Chief Analyst at Bitget Research. Factors such as holiday periods and Golden Week in Asia may have contributed to the sell-off, Lee said in an email.

Bitget has assured users that those affected by the token’s plunge will be fully compensated. In a statement on X (formerly Twitter), the exchange promised to release a compensation plan within 24 hours, with repayments to be completed within 72 hours.

$BGB experienced unexpected volatility today due to market conditions, but the price has quickly stabilized.#Bitget will fully compensate for any asset losses, and will provide a compensation plan within 24 hours, completing the compensation process within 72 hours. Bitget… pic.twitter.com/KJD2MLO9J6

— Bitget (@bitgetglobal) October 7, 2024

“$BGB experienced unexpected volatility today due to market conditions, but the price has quickly stabilized. #Bitget will fully compensate for any asset losses and will provide a compensation plan within 24 hours, completing the compensation process within 72 hours. Bitget always prioritizes user asset security, and we will continue to optimize margin position levels, risk management measures, and liquidation mechanisms to ensure a safer and more stable trading environment. We apologize for any inconvenience caused,” Lee stated.

This incident is not the first time a cryptocurrency has experienced such volatility. In a previous flash crash, OKX’s native token (OKB) dropped more than 50% in just three minutes due to a series of liquidations.