- Bitget’s exchange platform token BGB suddenly erased 50% of its value on Monday, slipped to a low of $0.5344.
- The reason behind the slump is currently unknown; the OKX exchange token was in a similar situation in January 2024.
- BGB recovered from the decline and made a comeback at $1.0706, still negative on Monday.
Bitget’s exchange token (BGB) had a very volatile start to the week and dropped by over 50% early morning on Monday, down to a low of $0.5344. BGB has since recovered and is back above $1.0706 at the time of writing. Bitget is currently investigating the price crash of the exchange token.
BGB slumps 50% in a short time, recovers from the dip
Bitget exchange’s native token dipped from its open of $1.099 to a low of $0.5344 in the early hours of Monday. The sudden decline in price surprised holders. Since then, the token has recovered, but it is still down nearly 3% on the day.
Bitget exchange told FXStreet that the team is aware of the market fluctuation incident. The exchange remains secure, and the price crash incident is currently being investigated. Further details will be provided once the investigation is complete.
BGB/USDT daily chart
A similar situation occurred with the OKX exchange’s native OKB token on January 23 and July 5. The token was hit by a steep correction and recovered the same day in both instances. On January 23, OKB erased 52% of its value and recovered within hours, as seen in the OKB/USDT daily chart below. In this time period, the token wiped out $6.5 billion in diluted market capitalization.
The exchange platform had announced full compensation for users for additional losses caused by abnormal liquidation with a specific compensation plan.
OKB/USDT daily chart
It is possible that the native tokens of the exchange platforms suffered a flash crash, an event where prices plummet and rebound rapidly due to high-frequency trading (HFT). HFT involves the automatic buying and selling of securities in large volumes.
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