In the early hours of October 7, 2024, around 3 AM UTC, the crypto community was caught off guard by an unusual event involving BGB, the token of the Bitget exchange. In a matter of moments, BGB’s price plummeted from $1.14 to a low of $0.53, marking a staggering 50% drop.
This “flash crash” occurred within just a few minutes, sparking panic among investors. Those holding long positions without stop-loss orders faced the risk of forced liquidation.
What makes this event more striking is that it happened while the broader crypto market was showing signs of recovery, with Bitcoin recently surging past $64,000. Naturally, this sudden dump raised concerns and questions within the community about what caused BGB’s rapid decline.
Fortunately, after this brief shock, BGB’s price stabilized and began to climb back, nearing $1.07, almost recovering fully.
Responding swiftly, Bitget issued a statement on X (formerly Twitter):
$BGB experienced unexpected volatility today due to market conditions, but the price has quickly stabilized.
Bitget will fully compensate for any asset losses, and will provide a compensation plan within 24 hours, completing the compensation process within 72 hours. Bitget always prioritizes user asset security, and we will continue to optimize margin position levels, risk management measures, and liquidation mechanisms to ensure a safer and more stable trading environment for you.
We apologize for any inconvenience caused.
However, Bitget has yet to provide a specific explanation for the sharp dump in BGB’s price.
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Notably, this isn’t the first time a major exchange token has faced unpredictable volatility. Back in January, OKB—the token of the OKX exchange—experienced a similar 50% drop. At that time, OKX also promised to compensate affected users.
