In line with its continued efforts to safeguard its users’ assets, the Singapore-headquartered derivatives exchange Bitget has launched its $200million Bitget Protection Fund.
As the main contributor to the digital asset market, crypto has come to transform the way ordinary people trade and invest their money and resources, spanning everything from environmental consciences to charitable donations.
Despite its newfound purpose within the industry, the volatility of the market continues to shake investors’ trust and test their confidence; generating steep financial consequences as a result.
Unpredictability and fear have become predominant feelings for crypto investors over the experience of the last two months. Take Bitcoin for example. Its value tumbled from around $29,700 recorded at the beginning of June to $23,200 at the time of writing.
And even though some coins have shown begun to show signs of stabilities, the market remains vulnerable to various FUD (fear uncertainty and doubt) against a backdrop of 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 market. The Bitget Protection Fund has been created with the goal to provide unparalleled security and ensuring a secure and safe trading experience for users around the world.
The fund is currently valued at $200million, consisting of 6000 BTC and 80 million USDT; with the exchange pledging to secure the value of the fund for the next three years.
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’s self-funding model exists without depending on a third-party insurance policy, and therefore is able to efficiently cover users’ loss of funds without external bureaucracy or policy changes.
The exchange has composed part of the fund with stablecoins, to ensure assets are kept stable and beyond the effects of market fluctuations.
To exclude bad characters within the community, Bitget has enforced stringent know-your-consumer (KYC) and anti-money laundering (AML) policies through its work with its third-party legal and compliance partners.
Speaking on the launch of the fund, the exchange’s managing director, Gracy Chen, recognised how the launch was bringing Bitget “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.”
Chen 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.”