Crash

Token

Bitget Token

On October 7, crypto exchange Bitget faced an&nbsp;<a style="text-decoration:none" href="https://coinmarketcap.com/currencies/bitget-token-new/">unexpected plunge</a> in the value of its native token, Bitget Token (BGB).&nbsp;
<figure class="image">
 <img alt="image.png" src="https://storage.bsc.news/image_a93c43cd2f.png" width="975" height="489">
 <figcaption>
 BGB 24h price chart (Source: CoinMarketCap)
 </figcaption>
</figure>
The token's price crashed by 50% within minutes, prompting the exchange to promise full compensation to affected users.&nbsp;
<h2 dir="ltr" id="span-span-the-crash-a-sudden-50-plunge-span-span">The Crash: A Sudden 50% Plunge</h2>
At around 02:58 UTC, BGB experienced a sharp drop, falling from $1.14 to $0.56 in less than five minutes, marking around 50% decline. This sudden drop caught traders off guard, and the token remained volatile for nearly ten minutes before rebounding to $1.04 as market conditions stabilized.&nbsp;
&nbsp;
Though BGB stabilized at $0.98 shortly after the drop, the incident left many wondering about the cause.&nbsp;
<h2 dir="ltr" id="span-span-bitget-s-response-promising-compensation-span-span">Bitget’s Response: Promising Compensation</h2>
In an&nbsp;<a style="text-decoration:none" href="https://www.bitget.com/support/articles/12560603816447">official statement</a>, Bitget confirmed it was aware of the price fluctuation and announced a plan to fully compensate users for any losses they incurred during the event. The exchange emphasized that its platform remains secure and operational, despite the volatility.&nbsp;
<div>
 <blockquote class="twitter-tweet">
 <a href="https://twitter.com/search?q=%24BGB&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BGB</a> experienced unexpected volatility today due to market conditions, but the price has quickly stabilized.<a href="https://twitter.com/hashtag/Bitget?src=hash&amp;ref_src=twsrc%5Etfw">#Bitget</a> will fully compensate for any asset losses, and will provide a compensation plan within 24 hours, completing the compensation process within 72 hours. Bitget… <a href="https://t.co/KJD2MLO9J6">pic.twitter.com/KJD2MLO9J6</a>— Bitget (@bitgetglobal) <a href="https://twitter.com/bitgetglobal/status/1843161739350925628?ref_src=twsrc%5Etfw">October 7, 2024</a>
 </blockquote> 
</div>
Bitget is currently investigating the cause of the crash and promised to provide more information once the investigation is complete. The exchange has committed to delivering a detailed compensation plan within 24 hours, with full compensation expected to be processed within 72 hours.&nbsp;
&nbsp;
Bitget stated that it is dedicated to improving user experience and optimizing key areas such as margin positions, risk management, and liquidation mechanisms to create a safer trading environment.
<h2 dir="ltr" id="span-span-possible-causes-of-the-crash-span-span">Possible Causes of the Crash</h2>
The exact cause of BGB’s sharp decline is still unclear. Potential factors include low liquidity during off-peak trading hours, market manipulation, or technical glitches.&nbsp;
&nbsp;
Market conditions at the time were reportedly “sluggish,” possibly due to Asian holidays, which may have affected overall liquidity and trading volume on the platform. However, until Bitget releases its findings, the exact trigger remains speculative.
&nbsp;
Ryan Lee, Chief Analyst at Bitget Research, addressed the event in a statement to CryptoSlate, urging users to consider the incident within a broader context.&nbsp;
&nbsp;
“While there have been fluctuations in BGB’s price today, it’s important to view it from a macro perspective,” said Lee, emphasizing that price volatility is not uncommon in the crypto market, particularly with smaller or newer tokens.
&nbsp;
Lee also pointed out that BGB had previously reached an all-time high of $1.48 in June, and its value had dropped nearly 30% since then.&nbsp;
&nbsp;
This isn’t the first time a crypto exchange’s native token has seen a sharp correction. Earlier this year, on January 23 and July 5, OKX’s OKB token&nbsp;<a style="text-decoration:none" href="https://x.com/okxchinese/status/1749794826399441133">experienced</a> similar price crashes, only to recover later the same day. In the January event, OKB erased 52% of its value within hours before bouncing back, wiping out $6.5 billion in diluted market capitalization in the process.

Bitget Announces Full Compensation Plan Following Sudden $BGB Token Crash

Table of Contents

BSCN

Other articles published on Oct 14, 2024

US Crypto ETFs Surge with $350M in New Inflows

VanEck Expands into Venture Capital with $30M Fund for Fintech, Blockchain, and AI

FXGuys is poised to become the hottest crypto of 2024

Solanex, Pioneering AI-Driven DEX on Solana, Launches $SOLDEX Token Sale

Rexale.com: Your Go-To Platform for Cryptocurrency Trading

Chad Musk (MUSKCHAD) Solana Memecoin Will Explode 19,000% Before Exchange Listing, While Shiba In...

Join our free newsletter for daily crypto updates!