Bitget’s BGB Token Suffers 56% Crash Amid Unclear Trigger

Bitget’s token BGB saw a sudden 56% drop on Oct 7, with the exchange pledging compensation and announcing a new partnership with LALIGA.

On October 7, the Bitget exchange platform experienced a notable disruption when its token, BGB, saw an abrupt price plunge. The token’s value dropped sharply from $1.14 to a low of $0.53, marking a sudden decline of over 56%. 

This dramatic dip occurred unexpectedly, and Bitget quickly took steps to stabilize the token’s price, which began to recover shortly after the initial drop. 

On the morning of October 7, the Bitget exchange platform token BGB suddenly plummeted from $1.14 to a minimum of ￥0.53, a drop of more than 50%, and then began to recover. The reason is currently unknown. A similar situation occurred on July 5 and January 23 with OKB, which… pic.twitter.com/R46jvyFaJZ

— Wu Blockchain (@WuBlockchain) October 7, 2024

The cause of this price fluctuation remains unknown, but the incident mirrors similar events seen earlier in 2024 with the OKB token, which experienced a comparable sharp decline on two occasions.

As the broader market struggles to recover from its weekly declines, the Bitget Token (BGB) was priced at $1.07 during this press, reflecting a modest 0.60% increase over the last 24 hours and a stronger 3.48% rise over the past week.

The 24-hour trading volume of $5.88 million, while modest in comparison to larger cryptos, suggests stable trading activity and interest from investors.

Bitget’s Response and Compensation Plan

In light of the October 7 event, Bitget issued an official statement to address the concerns of affected users. The company acknowledged the abrupt price movement and committed to compensating those who incurred losses during the drop.

Bitget announced that it would finalize a compensation plan within 24 hours and complete the reimbursement process in 72 hours. The platform further emphasized its commitment to improving user experience, pledging to optimize risk management tools and implement stronger safeguards to prevent future incidents.

As part of its broader risk management strategy, the company outlined plans to enhance margin position levels and liquidation mechanisms to better control volatile market behavior.

Bitget’s Strategic Partnership 

Meanwhile, this event occurred at a time when Bitget recently expanded its presence in the sports sector through a multi-million-dollar partnership with the renowned football league, LALIGA. This collaboration is seen as a significant step in the exchange’s strategy to integrate Web3 technologies into mainstream industries.

LALIGA’s global prominence and its roster of elite players, including Kylian Mbappé and Vinícius Jr, align with Bitget’s goal of bridging the gap between digital innovation and sports. LALIGA plans to leverage Bitget’s expertise in blockchain and Web3 integration to enhance its digital operations.