Bitget announced that it will increase its Protection Fund to USD 300 million to provide better protection and additional security to cryptocurrency users. The initiative is part of the company’s efforts to restore confidence in the cryptocurrency market after the collapse of FTX. In addition, Bitget will launch a relief fund of USD 5 million to support FTX users. The company also plans to launch its Merkle Tree Proof of Reserves to market within 30 days.
The Bitget Protection Fund was launched in July this year with the aim of protecting users’ crypto assets. The fund was initially launched worth $200 million, consisting of 6,000 BTC and 80 million USDT. The fund is fully self-funded, allowing for greater flexibility and discretion to efficiently hedge user assets without external bureaucracy or policy changes.
The $300 million hedge fund will be comprised of popular, highly liquid cryptocurrencies such as BTC, USDT, and USDC. Bitget commits to guarantee the value of the fund for the next three years without withdrawal. If the value of the fund falls in the event of, for example, a devaluation of the BTC price, Bitget will continue to hedge the position to ensure that the balance does not fall below $300 million.
Gracy Chen, CEO of Bitget, said: “The expansion of the Bitget Hedge Fund is another move by Bitget to help increase confidence in the cryptocurrency world as a whole. The fund will be able to offer high-level security and protection for users, especially in extreme and unpredictable situations in the cryptocurrency industry. We believe that risk management policies such as hedge funds will be a must for prominent and trusted exchanges.“.
“Bitget has taken steps to ensure that its platform is secure and stable, with adequate protection for our users. We will continue to focus on initiatives to build a trustworthy and transparent cryptocurrency ecosystem for allChen concluded.
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