On October 7, crypto exchange Bitget faced an unexpected plunge in the value of its native token BGB. Bitget pledged full compensation for the losses.

The Crash: A Sudden 50% Plunge

At around 02:58 UTC, BGB experienced a sharp drop from $1.14 to $0.56 within less than five minutes, marking around a 50% decline. The token's price remained volatile but stabilized at $0.98 shortly after.

Bitget’s Response: Promising Compensation

In an official statement, Bitget confirmed awareness of the price fluctuations and announced plans to fully compensate users for incurred losses. The exchange is investigating the cause and has pledged to provide a compensation plan within 24 hours, ensuring full compensation within 72 hours.

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 were reportedly 'sluggish' due to Asian holidays, which might have affected overall liquidity.

The cryptocurrency market is subject to volatility, especially with smaller or newer tokens. It's important to consider the broader context in such situations.