On October 7, crypto exchange Bitget faced an unexpected plunge in the value of its token BGB. The exchange promised full compensation to affected users.

The Crash: A Sudden 50% Plunge

Around 02:58 UTC, BGB experienced a sharp drop from $1.14 to $0.56 in less than five minutes, marking 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.

Bitget’s Response: Promising Compensation

In an official statement, Bitget confirmed awareness of the price fluctuation and announced plans to fully compensate users for any losses incurred. The exchange emphasized that its platform remains secure and operational despite the volatility.

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.

Bitget is investigating the incident and promised to provide more information once the investigation is complete. The exchange is committed to improving user experience and optimizing key areas such as margin positions, risk management, and liquidation mechanisms to create a safer trading environment.