Bitget has launched the Protection Fund to safeguard its users against hacks and thefts. Through the new fund, the Singapore-based crypto derivatives exchange wants to lift the industry’s image.
The Protection Fund is made up of 6,000 Bitcoin worth around $140.2 million, and 80 million USDT. Bitget believes this will quell security concerns and boost investor confidence. The crypto market slump, followed by the Terra-LUNA collapse, has battered faith in the cryptocurrency industry’s ability to weather significant periods of volatility. Several crypto businesses have been hit, with multiple lenders and exchanges suspending crypto asset withdrawals as they don’t have capital on hand to satisfy users who wished to opt out of the market.
Gracy Chen, Bitget’s managing director, said the Protection Fund will help the platform mitigate investors’ concerns and attract potential users. Bitget believes its initiative will encourage other centralized exchanges to address concerns about accountability and help win back investors’ confidence. The exchange has pledged to secure the value of its war chest over a three-year horizon. Bitget will be self-funded and non-reliant on third-party insurance. It will help bring about external bureaucracy or policy changes.
Established in 2018, Bitget is one of Southeast Asia’s fastest-growing derivatives exchanges which boasts around 20,000 active traders. It processed around $100 billion in transactional value in 2021.