Bitget Token (BGB) Suffers a 50% Flash Crash, Exchange Promises Compensation

On October 7, crypto exchange Bitget faced an unexpected plunge in the value of its native token, Bitget Token (BGB). The token's price crashed by 50% within minutes

Crypto exchange Bitget encountered an unexpected downturn in the value of its native token, Bitget Token (BGB), on October 7.

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

The Crash: A Sudden 50% Plunge

At around 02:58 UTC, BGB experienced a sharp drop, falling from $1.14 to $0.56 in less than five minutes, indicating a 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.

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

Bitget’s Response: Promising Compensation

In an official statement, 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 highlighted that its platform remains secure and operational, despite the volatility.

$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… pic.twitter.com/KJD2MLO9J6

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 reported to be “sluggish,” which may be attributed to Asian holidays that could have affected overall liquidity and trading volume on the platform. However, until Bitget announces its findings, the precise trigger remains speculative.

In a statement to CryptoSlate, Ryan Lee, Chief Analyst at Bitget Research, addressed the event and encouraged users to consider it 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, highlighting that price volatility is not uncommon in the crypto market, especially with smaller or newer tokens.

Lee also noted that BGB had previously attained an all-time high of $1.48 in June, and its value had dropped nearly 30% since then.

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 experienced 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.