🔥 BGB Token Dump: What Happened?
posted 7 Oct 2024
The morning of October 7 saw a dramatic drop in the price of Bitget’s BGB token, plummeting from $1.14 to $0.064. While the price bounced back relatively quickly, several traders were affected by the volatility.
At the time of writing, BGB had recovered to $1.07 (CoinGecko data), leaving the 24-hour trading volume slightly positive (+0.5%).
“$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 for you.
We apologize for any inconvenience caused,” the official statement reads.
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At the time of writing, BGB had recovered to $1.07 (CoinGecko data), leaving the 24-hour trading volume slightly positive (+0.5%).
BGB Token's Sudden Drop and Swift Recovery Source: coingecko.com
The representatives of Bitget issued an apology to users, promising to compensate all losses and damages incurred by affected clients.
“$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 for you.
We apologize for any inconvenience caused,” the official statement reads.
CEO Gracy Chen confirmed that the team is already analyzing the reasons behind the sudden event.
Chen emphasized that there’s no need for alarm, as the platform remains financially healthy:
Following an internal investigation, it was concluded that the price crash was triggered by a “cascade of liquidations” amid a prolonged downward trend.
Chen emphasized that there’s no need for alarm, as the platform remains financially healthy:
In the third quarter of 2024, our global market share has reached an impressive 11%, ranking us fourth in the world. Our asset reserve exceeds 176%, and we have the second-largest protection fund globally to ensure that users affected by similar events can quickly receive compensation,Chen reassured users.
A similar event happened in January 2024 with OKB, the native token of OKX, when the token’s price plummeted from $51 to $25.
Following an internal investigation, it was concluded that the price crash was triggered by a “cascade of liquidations” amid a prolonged downward trend.
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