5th August 2022 - Global derivatives exchange Bitget have announced the launch of the US$200 million Bitget Protection Fund, which aims to ensure its users' assets are safeguarded.
The volatility from the crypto bear market has triggered a number of incidents that have threatened the trust of traders, with many bearing 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, it is still vulnerable to unfavourable macroeconomic conditions in the traditional finance field. As a result, addressing security concerns is a priority for many crypto firms.
The Bitget Protection Fund was created with the goal of increasing security and ensuring a secure and safe trading experience for users. The fund is currently valued at US$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. The fund will act as a safeguard for Bitget users and the Bitget trading platform.
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. The Fund is also composed partly of stable coins, which ensures the stability of the assets and will not be as susceptible to fluctuations in the crypto market.
In addition to the Bitget Protection Fund, Bitget has put in place more stringent KYC and AML policies, and have partnered with third-party legal and compliance partners to strengthen its standards for compliance.
Commenting on the launch, Gracy Chen, Managing Director of Bitget said, "As one of the world's leading crypto exchanges, the safety of our users' assets has 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."
She continued to add, "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."
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