On October 7, crypto exchange Bitget faced an unexpected plunge in the value of its native token, Bitget Token (BGB). The exchange has promised 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. This sudden drop caught traders off guard, but the token stabilized to $1.04 within ten minutes.

Bitget’s Response: Promising Compensation

Bitget confirmed its awareness of the price fluctuation and announced a plan to compensate users for any losses. 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,' potentially due to Asian holidays, affecting liquidity and trading volume on the platform.

Bitget is currently investigating the cause of the crash and has promised to provide more information once the investigation is complete. The exchange is working on improving user experience and optimizing important areas such as margin positions and risk management to create a safer trading environment.