Crypto exchange Bitget has pledged to compensate holders of its native Bitget Token (BGB) who suffered losses during a major price drop on Monday.

The BGB token experienced a sharp decline, falling from $1.14 to as low as $0.54 in just 15 minutes around 02:30 UTC. After this flash crash, it managed to recover to around $1.04 and is currently priced at approximately $1.06.

Market Influence

Flash crashes can occur in the cryptocurrency market, often due to a sudden sell-off by many holders of an asset. In this instance, Ryan Lee, Chief Analyst at Bitget Research, indicated that the sudden downturn was likely caused by "overall market sluggishness" related to holiday periods and Golden Week in Asia.

Bitget has assured users that those who experienced losses will receive full compensation. The exchange stated it would unveil a compensation plan within 24 hours and process repayments within 72 hours.

Lee commented, "Occasional price dips are expected in any asset... Despite this brief downturn, BGB has quickly stabilized, proving its resilience and the confidence our community has in its long-term potential."

Similar Incidents

Previously, in another significant crypto flash crash, OKX’s native token (OKB) also suffered a rapid decline of over 50% within minutes.