Crypto exchange Bitget promised to pay holders of the Ethereum-based BGB token on Monday, shortly after the cryptocurrency lost more than half its value in a sudden “flash crash.”
The token fell 52% to $0.54 from $1.14 around 10:30 a.m. on Sunday, according to CoinGecko. Data.
Bitgate attributed the flash crash to “unexpected volatility” in the crypto market in a Twitter (aka X) post on Monday. In the post, the company said it would complete the compensation process within 72 hours and issue a payment plan to BGB owners within 24 hours.
“Bitget will fully compensate for any property loss,” Bitget he said. In the post. We will continue to enhance margin position standards, risk management measures and screening methods to ensure a safe and stable trading environment for you.
Ryan Lee, chief analyst at Bitgate Research, said in a joint statement on Monday that BGB's sudden price drop is nothing to fear for retail investors. Decrypt.
“Occasional inflation is expected in any asset, and today's decline may be due to the overall market slowdown, partly due to the impact of holidays and the Asian Golden Week, which usually affects market activity,” he said. “Despite this brief setback, BGB quickly stabilized, proving its resilience.”
BGB is trading at $1.08 as of press time, according to CoinGecko Data It shows.
The token's sudden and drastic price drop – and equally rapid recovery – is an example of a flash crash. A flash crash can occur when many token holders suddenly decide to sell a given asset at once, causing the price to drop significantly in a short period of time. After that initial downturn, the property's value rebounds quickly.
There have been several flash crashes in the highly volatile cryptocurrency market this year.
The OKX token dropped more than 50% in less than five minutes in January. Meanwhile, the price of Bitcoin It fell by 80% Less than $9,000 on the crypto exchange Bitmex in March, which led to an investigation into the matter.
Edited by Andrew Hayward.
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