Cryptocurrency exchange platform, Bitget, has announced that it will boost its safety fund to $300 million to further secure and reassure consumers of cryptocurrencies.
This is a part of Bitget’s ongoing attempts to restore faith in the cryptocurrency market following FTX’s collapse, which caused consumers to suffer enormous losses.
The initiatives include a 5 million USD Builders’ Fund to assist FTX users as well as a strategy to distribute the Merkle Tree Proof of Reserves, which is now being developed and will be available in 30 days.
With over 8 million members across more than 100 countries, Bitget, founded in 2018, is one of the top five cryptocurrency exchanges in the world. Its key features include new goods and social trading services.
The exchange intends to boost cryptocurrency adoption by working with reputable partners, such as Argentinian legend Lionel Messi, Italian top-flight team Juventus, PGL Major’s official esports crypto partner, and the top esports organization Team Spirit. The exchange is dedicated to offering users one-stop, secure trading solutions.
To protect users’ crypto assets, Bitget’s Protection Fund was introduced in July of this year. It was founded with a 200 million USD capital, which was made up of 6000 BTC and 80 million USDT.
Since the fund is entirely self-funded, it has more freedom and discretion to effectively protect users’ assets without requiring external bureaucracy or changing existing policies.
Prominent cryptocurrencies with significant liquidity, such as BTC, USDT, and USDC, will make up the expanded 300 million USD protection fund.
The exchange has promised to maintain the fund’s worth for the following three years without allowing any withdrawals.
Bitget will keep covering the position to make sure that the balance is always at least $300 million USD, even if the fund value decreases as the price of BTC diminishes. All the fund’s information is available to the public and users to guarantee openness.
According to Gracy Chen, Managing Director of Bitget, its decision to expand its Bitget Protection Fund is another step the company is taking to boost confidence and trust in the cryptocurrency industry as a whole.
The fund would be able to provide customers with top-notch safety and protection, particularly in severe and unpredictable scenarios in the cryptocurrency industry, by acting as an emergency reserve and with additional funding.
We think protection funds and other risk management practices will become standard practices for reputable and well-known exchanges.
She continues by stating that Bitget makes every effort to make sure that the platform is secure, reliable, and offers sufficient security for its consumers. We will keep putting our efforts toward creating a secure and open crypto ecosystem for everyone.
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