Bitget raises Protection Fund to $300M
…Reassure users after FTX’s collapse
Global cryptocurrency exchange, Bitget, has announced that it will increase its Protection Fund to 300 million USD, to provide better security and assurance to crypto users.
This is part of Bitget’s efforts in building trust of the crypto market after FTX’s collapse, which left users with massive losses. The initiatives come along with a 5 million USD Builders’ Fund to support FTX users, coupled with the plan to share the Merkle Tree Proof of Reserves, which is under preparation and will be released in 30 days.
Bitget’s Protection Fund was launched in July this year with the objective to safeguard users’ crypto assets. It was set up with a fund worth of 200 million USD, consisting of 6000 BTC and 80 million USDT. The fund is completely self-funded, allowing more flexibility and discretion to efficiently cover users’ assets without external bureaucracy or policy changes.
The increased 300 million USD protection fund will be made up of popular cryptocurrencies of high liquidity, such as BTC, USDT, and USDC. The exchange has pledged to secure the value of the fund for the next three years with no withdrawal. If the fund value drops as the price of BTC declines, Bitget will continue to cover the position to ensure that the balance is not less than 300 million USD, at all times. To ensure transparency, all the information about the fund is open to the public and users can view the wallet addresses here. https://www.bitget.com/en/protection-fund
Managing Director, Bitget, Gracy Chen, said, “Expansion for the Bitget Protection Fund is another move by Bitget to help enhance trust and confidence in the crypto space as a whole. Working as an emergency reserve and with additional capital, the fund would be able to offer top-notch safety and protection for users, especially in extreme and unpredictable situations in the crypto space. We believe that risk management policies such as protection funds would become the norm for prominent and reliable exchanges.”
“Bitget strives to work on quality efforts to ensure that the platform is safe and stable with adequate protection for our users. We will continue to focus on initiatives in building a trustworthy and transparent crypto ecosystem for all.”