Bitget Token (BGB) Crashed by 50% Within Minutes, Exchange Promises Full Compensation

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.

Around 03:00 UTC on Monday, the native token of Bitget, known as Bitget Token (BGB), experienced a drastic price drop of about 50% within a span of five minutes. This caused the token's price to decrease from $1.14 to $0.56. Afterward, BGB's price quickly recovered, and within ten minutes, it rose back to $1.04 as market conditions stabilized once again. Later on, BGB's price managed to stabilize at $0.98.

This sudden and drastic price drop left many traders wondering about the possible cause behind it. Bitget stated that they are currently investigating the matter and will provide further updates as soon as the investigation is complete. Additionally, the exchange promised to deliver a detailed compensation plan within 24 hours, and the full compensation will be processed within 72 hours. Bitget also mentioned that they are working on improving user experience by optimizing key areas like margin positions, risk management, and liquidation mechanisms to create a safer trading environment.

The precise reason for BGB's sharp decline is still unknown, but potential factors could include low liquidity during off-peak trading hours, market manipulation, or technical glitches. At the time of the incident, market conditions 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 for the crash remains a subject of speculation.

In response to the incident, Bitget is planning to compensate affected users for any losses incurred during the drastic price drop of BGB on Monday. The exchange stated that they will announce a specific compensation plan within 24 hours and complete the full compensation process within 72 hours.

Following the incident, Bitget is also taking steps to improve user experience and optimize key areas like margin positions, risk management, and liquidation mechanisms to create a safer trading environment.

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