Orhan 
Cryptocurrency exchange Bitget announced that it would compensate holders of its local token, Bitget Token (BGB), for losses incurred due to the sudden drop in BGB on Monday. The BGB token experienced a decline of up to 52%.
According to TradingView data, the value of BGB plummeted from $1.14 to $0.54 in just 15 minutes around 5:30 AM. However, it later recovered to $1.04 and is currently trading around $1.06.
While sudden drops like this are not uncommon in the cryptocurrency market, it is often difficult to explain why investors resort to panic selling. Ryan Lee, the chief analyst at Bitget Research, attributed the situation to “general market stagnation” caused by factors such as holidays in Asia and Golden Week.
In a statement on the social media platform X, Bitget announced that all affected holders would be reimbursed for their losses due to the BGB drop. The compensation plan will be announced within 24 hours, and payments will be completed within 72 hours.
What is BGB?
Bitget Token (BGB) is the native token of the Bitget cryptocurrency exchange, offering trading fee discounts, staking opportunities, and other perks on the platform. The token is designed to optimize users’ trading experiences and encourage greater contributions to the Bitget ecosystem.
In the cryptocurrency market, where such sudden crashes occur, Bitget’s swift implementation of a compensation plan is seen as a critical step in maintaining trust in the platform. Despite the BGB dump event, the token’s quick recovery and the measures taken by the exchange are viewed as a positive development for investors.
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