On Monday morning, the native token of the Bitget cryptocurrency exchange BGB suddenly dropped by over 50% in a matter of minutes. The token price plummeted from $1.14 to $0.79 without any conspicuous trigger.
Following the crash, the token price remained volatile and rebounded back to $1.14 eventually stabilising around $1.07.
Following the unprecedented drop in price – details of which are yet to be confirmed as to why it happened, – Bitget has confirmed that it will compensate in full to all investors who might have incurred losses due to this sudden drop in price.
In an announcement on X, Bitget said that it “will fully compensate for any asset losses, and will provide a compensation plan within 24 hours, completing the compensation process within 72 hours.”
However, despite the exchange owning the mistake and agreeing to compensate investors in full, not all are happy. One pointed out how a similar incident happened with OKB token implying that it was a planned event.
Currently, BGB price is stable and the token is trading around $1.07. It has posted a nominal gain of 0.27% in the last 24 hours.
Bitget Launches An Investigation
Bitget has launched an investigation into what caused this sudden price drop. While this is not the first time such an anomalous price drop has been reported, the reason as to why it dropped is yet not clear.
As a part of the investigation the crypto exchange will also try to determine the investor losses following which it will compensate them. The exchange has promised 100% compensation, but how they would identify investor losses has not been made public.
Bitget’s BGB token has performed well over the last week despite a sluggish market momentum gripping the broader crypto market last week. The token is up 5.22% in the last seven days.
