Cryptocurrency exchange Bitget has pledged to fully compensate users affected by an unexpected price volatility of its native token, BGB.

The announcement comes in response to a sudden price dump that saw BGB's value plummet for a brief period of time.

Cryptocurrency exchange Bitget has announced plans to fully compensate users affected by an unexpected price volatility of its native token, BGB.

The announcement comes in response to a sudden price dump that saw BGB’s value plummet for a brief period of time on October 7, 2024.

BGB Price Drops Abruptly

According to data from CoinMarketCap, the BGB price experienced abnormal fluctuations for approximately ten minutes, beginning at 2:53 AM (UTC). During this briefの時間, the token’s price dropped sharply from a high of $1.14 to a low of $0.6441.

This drop amounted to a substantial 43.5% decrease in BGB's value without any apparent justification. However, the price quickly rebounded, and BGB is currently trading at $1.06, showing a recovery from the earlier dump.

In response to the incident, Bitget has acknowledged the unexpected volatility and its potential impact on users.

$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 (@bitgetglobal) October 7, 2024

The exchange has committed to fully compensating any asset losses incurred during the event. Bitget also plans to announce a detailed compensation plan within 24 hours of the incident. Furthermore, the exchange aims to complete the entire compensation process within 72 hours.

"We always prioritize 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," Bitget announced.

Following the incident, Bitget has also announced plans to enhance its risk management protocols. As part of these efforts, the exchange will focus on optimizing margin position levels, improving risk management measures, and refining liquidation mechanisms.

Bitget CEO Responds to the Incident

Gracy Chen, CEO of Bitget, also issued a statement following the incident. In her statement, Chen reassured users that the exchange will not let any Bitget user suffer losses and highlighted Bitget's strong performance in the cryptocurrency market.

"Don't worry, we won't let any Bitget user suffer losses. We have 11% of the global market share (ranking 4th in Q4 2024), 176% asset reserve (ranking 2nd), and the second-largest protection fund. Together, we Bitget, Better Get!" she said.

This incident marks the latest in a series of unexpected price dumps observed among exchange tokens in 2024. Previously, OKB experienced similar price drops on July 5 and January 23, with its price plummeting to lows of $25 from $48 in both instances.