The token's price crashed by 50% within minutes, prompting the exchange to promise full compensation to affected users.

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.

A sharp drop in the token's price on a major exchange prompted the platform to promise full compensation to affected users.

The Crash: A Sudden 50% Plunge

At around 02:58 UTC on December 22, the Binance Fan Token (BGB) experienced a steep decline, falling from $1.14 to $0.56 in less than five minutes—a drop of around 50%. 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.

Though BGB stabilized at $0.98 shortly after the drop, the incident left many wondering about the cause.

Bitget's Response: Promising Compensation

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.

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.

Possible Causes of the Crash

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.

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.

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.

“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.

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.

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