BitGet protection fund worth $200M hints at an investor-centric trend
Bitget, a crypto derivatives exchange,
has launched a $200 million fund to safeguard its customers' assets, with the ultimate objective of restoring investor confidence in the midst of a lengthy bear market.
Bitget joins a growing list of cryptocurrency firms, such as Binance, that have used protection funds to secure investor trust.
At the time of writing, the Bitget Protection Fund was valued at $200 million and comprised of 6,000 Bitcoin (BTC) and 80 million Tether (USDT). Considering the fact that the crypto winter shows no signs of abating, Bitget has vowed to protect the fund's worth for the next three years.
While Bitget decided to self-finance the whole protection fund rather than rely on third-party insurance coverage, Binance established its Secure Asset Fund for Users (SAFU) by allocating 10% of the trading cost.
Gracy Chen, managing director of Bitget, shared facts about the newly established fund, adding that “the protection fund would help us minimize investors' fears and attract future customers. As we continue to experience the crypto winter, it is critical that our users have confidence that their assets are secure.”
Bitget uses both stablecoin and BTC in the protection fund to combat the unpredictable high volatility of the cryptocurrency markets. In order to prevent bad actors from accessing its services, Bitget adopted strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
