Date: Tue, Oct 08, 2024, 08:33 AM GMT
In a turbulent turn of events in the cryptocurrency market, Bitget’s BGB token saw a dramatic drop in value yesterday. Between 2:53 AM and 2:58 AM (UTC) on October 7, 2024, the token’s price plummeted over 53%, dropping from approximately $1.14 to a low of $0.53 within just a few minutes. However, the price quickly recovered to around $1.06 within an hour.
This sudden volatility had significant implications for users engaged in margin and futures trading on the platform. Bitget’s investigation revealed that several large leveraged trades executed in rapid succession triggered a wave of forced liquidations across various trading products, including Loans, Spot Margin, and Bitget Futures.
Bitget announced a compensation plan
To address the situation and support affected users, Bitget announced a compensation plan. The exchange will fully compensate users impacted by the price fluctuations. Eligible users include those who held or used the following products during the incident:
Loans collateralized by BGB
Spot Margin positions that included BGB
Cross or Isolated Bitget Futures positions that included BGB
The compensation will be credited in either USDT or BGB and should appear in the accounts of eligible users by 3:59 PM (UTC) on October 10, 2024.
How Compensation is Calculated
Bitget will cover the total equity loss from forced liquidations resulting from the abnormal price volatility. However, any negative balances covered by the platform’s risk reserve will not be included in the compensation.
The calculation for losses will be based on the difference between the highest price of BGB during the incident (which was $1.1423) and the price at which the forced liquidation occurred. For instance, if a user had 100 BGB forcibly liquidated at $0.70, the loss would be calculated as follows:
(1.1423−0.70)×100=44.23 USDT
Bitget’s proactive approach aims to prioritize user interests and maintain trust within the trading community.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.
The opinions and market insights shared on CoinsProbe represent the views of individual authors based on prevailing market conditions at the time of publication. Cryptocurrency investments carry significant risk and volatility. Readers are encouraged to conduct their own research and seek professional financial advice before making investment decisions. CoinsProbe and its contributors do not accept responsibility for financial losses or decisions made based on published content.
CoinsProbe may publish sponsored articles, affiliate links, or promotional collaborations. All sponsored material is clearly labeled to maintain transparency with our audience. Our editorial decisions remain fully independent, and advertising partnerships do not influence reviews, rankings, or published opinions.
Since 2023, CoinsProbe has delivered reliable insights on cryptocurrency, blockchain, and digital assets. Our content is created by experienced researchers and analysts who follow strict editorial standards focused on accuracy, transparency, and credibility. Every article is carefully reviewed and verified using trusted sources and current market data. We provide unbiased analysis and timely updates covering everything from emerging crypto projects to major industry developments.
