Bitget Issues a $200 Million "Protection Fund" to Protect Cryptocurrency Investors
Singapore-based cryptocurrency derivatives exchange Bitget said on Sunday it had launched a new fund designed to protect against hacking and theft of cryptocurrencies.
According to Bitget, the exchange's $200 million "Protection Fund", consisting of 6,000 BTC and $80 million, is trying to dispel security concerns and increase investor confidence by protecting its users' assets.
The recent market turmoil, which has taken most industry participants by surprise, has undermined faith in the ability of cryptocurrencies to withstand significant periods of volatility.
Several lenders and exchanges moved to restrict or freeze the withdrawal of crypto assets from their platforms after it turned out that they did not have the capital to pay their users who wanted to abandon the market.
Combined with the billions of dollars lost as a result of hacks and thefts last year alone, trust in the cryptocurrency community, as well as in platforms seeking to securely store user assets, continues to fall.
Bitget said that part of the fund's allocation to stablecoins will help alleviate the pressure associated with this volatility, rather than relying on cryptocurrency fluctuations.
The exchange, established in 2018, is one of the fastest growing derivatives exchanges in Southeast Asia, with about 20,000 active traders who, according to its LinkedIn profile, made transactions worth about $100 billion in 2021.
Bitget said it has committed to securing the value of its war chest for three years, which is expected to be self-funded and not dependent on third-party insurance, which it believes will help move beyond "external bureaucracy" or "policy changes."
"The Protection Fund will help us mitigate investor concerns and attract potential users," Bitget managing director Gracie Chen said in a statement. "We believe our initiative will encourage other CEX to address accountability issues... and help regain investor confidence."
https://coin-signal.com/cryptonews/bitget-issues-a-200-million-protection-fund-to-protect-cryptocurrency-investors/
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