Bitget Launches New Fund Designed to Protect Against Hacks and Theft

Following the recent decline in cryptocurrency prices, the Singapore-based crypto derivatives exchange Bitget announced on Sunday that it had started a new fund to prevent theft and hacking and to improve the industry’s reputation. By safeguarding the assets of its users, the exchange’s $200 million “Protection Fund,” which consists of 6000 BTC and 80 million USDT, aims to ease investor concerns about security and raise investor confidence, according to Bitget. Recent market volatility, spurred by a lender contagion that most industry participants were unaware of, has eroded faith in cryptocurrency’s capacity to withstand prolonged periods of instability. Multiple Lenders Froze Crypto Asset Withdrawals Following reports that they lacked the funds on hand to pay out their users who wanted to exit the market, some lenders and exchanges attempted to block or halt crypto asset withdrawals from their platforms. Trust in the cryptocurrency community and the platforms looking to hold users’ funds properly is continuing to decline, especially in light of the billions of dollars lost to hacks and theft last year. Instead of relying on cryptocurrency swings, a portion of the fund’s stablecoin allocation will assist ease the stresses brought on by that volatility, according to Bitget. Bitget Claims To Secure Its War Chest Bitget claimed that for three years, it has committed to maintaining the value of its war chest. It anticipates opera...