Bitget’s Token Plunges Over 50%, Exchange Promises Full Compensation

On October 7, Bitget's native BGB token experienced a serious crash, falling from $1.14 to just over $0.53 in a matter of minutes before partially recovering to $1.

This drop of over 50% in just five minutes caused considerable concern among traders, sparking speculation about the potential causes.

In response, Bitget quickly announced a compensation plan for affected users, committing to fully cover all losses and provide additional details within 24 hours, and completing the process in 72 hours.

The sudden volatility, which lasted about ten minutes, raised questions about possible causes such as low liquidity, market manipulation or technical problems.

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Market conditions during the event were sluggish, potentially influenced by Asian holidays such as Golden Week, which often affect liquidity and trading activity.

Ryan Lee, principal analyst at Bitget Research, stressed that the price decline should be viewed in a broader context. He pointed out that despite the temporary downturn, BGB has shown impressive growth, increasing by over 130% in the last year. Lee attributed this performance to strong community support and innovation in the Bitget ecosystem, which have helped the sustainability and long-term potential of the token.

Bitget has also announced plans to optimize margin positions, risk management strategies and liquidation mechanisms to enhance trade safety and prevent future incidents like this one.

Alexander Stefanov