BusinessDay

Bitget launches $200 million Protection Fund to rebuild Traders’ trust

Bitget, global derivatives exchange platform has announced the launch of the $200 million Bitget Protection Fund, as part of its continued efforts in prioritising security, ensuring its users’ assets are safeguarded.

The Bitget Protection Fund is created with the goal to provide unparalleled security and to ensure a secure and safe trading experience for users around the world.

“As one of the world’s crypto exchanges, the safety of our users’ assets have always been our first and foremost priority. With the launch of the Bitget Protection Fund, we are one step closer to fulfilling our commitment to safeguarding and protecting our Bitget community.

“The protection fund will help us mitigate investors’ concerns and attract potential users. As we continue to endure the crypto winter, it is crucial that our users can rest assured that their funds are kept safe,” Gracy Chen, Managing Director, Bitget said.

Bitget says the fund is currently valued at $200 million, consisting of 6000 BTC and 80 million USDT. Bitget has pledged to secure the value of the fund for the next three years.

According to the company, the fund will ultimately act as a safeguard for Bitget users and the Bitget trading platform, while also helping to usher in a new era of safety and protection in the crypto space as a whole.

“The Bitget Protection Fund is entirely self-funded and does not rely on a third-party insurance policy, and therefore is able to efficiently cover users’ loss of funds without external bureaucracy or policy changes. Moreover, the Fund is composed partly of stable coins, which ensures the stability of the assets and will not be as susceptible to fluctuations in the crypto market,” the company said.

Read also: Accelerating Nigeria’s agric growth hinges on tech, innovation – Experts

As crypto continues to dominate the digital asset market, it revolutionised the way people trade and invest their resources. However, the volatility from the bear market triggered recent incidents that threatened the trust of traders worldwide, and many had to bear steep financial consequences as a result.

Investors have experienced a volatile period and severe fear sentiment in the last two months. Even though the crypto market is moving out of the extreme fear zone recently, Bitget says it is still vulnerable to various FUD (fear uncertainty and doubt) across the crypto world and unfavourable macroeconomic conditions in the traditional finance field.

“Addressing security concerns and increasing investor confidence should be among those priorities for different firms in the bear market,” the company said.

Similarly, Bitget says it is focused on the fight against illegal activities and put in place stringent know your clients and anti-money laundering policies to ensure bad characters are kept out of the Bitget community.

Bitget has also partnered with third-party legal and compliance partners to strengthen its standard for compliance and maintain a regulated operation.

“Moving forward, as we continue our mission to drive global crypto adoption, we also make a pledge focused on creating a fair and secure digital asset marketplace with investor protection and market integrity as key priorities.

“Meanwhile, we believe our initiative would encourage other CEXs to address concerns of accountability, safety, and security in crypto space, and help win back investors’ confidence and build a better crypto world together,” Chen said.

Get real time updates directly on you device, subscribe now.