In a move that underscores the paramount importance of security and user protection in the volatile crypto market, Bitget, a leading crypto exchange, has unveiled its Protection Fund Valuation Report for July 2023. The report reveals an impressive track record, showcasing that the fund’s value has consistently exceeded the US$300 million mark since November, and in July, it soared to surpass US$368 million.
Bitget’s Protection Fund, initiated in August 2022, has emerged as a robust safeguard for users’ crypto assets, reflecting the platform’s commitment to financial security. The fund was introduced with a substantial value of US$200 million, establishing a sturdy financial buffer against various unpredictable scenarios such as force majeure events, hacking attempts, and turbulent market conditions.
Notably, the Protection Fund operates on a self-funding basis, which ensures operational autonomy and flexibility. This approach enables swift asset coverage without the need for external policies or adjustments. To bolster its stability and liquidity, Bitget elevated the fund’s value to over US$300 million in November 2022, comprising a diverse portfolio of high-liquidity cryptocurrencies like BTC, USDT, and USDC.
Throughout the entirety of July, Bitget diligently monitored the Protection Fund’s value, ensuring that it consistently stayed above the US$300 million threshold. The resurgence of Bitcoin prices around mid-July further propelled the fund’s book value to breach the US$368 million mark, accompanied by an average value of US$359.6 million.
Central to Bitget’s approach is the resolute commitment to stability. The Protection Fund’s value is underwritten against potential declines for an unwavering three-year span, without permitting any withdrawals. In the event of a possible drop in fund value due to coin price fluctuations, Bitget stands firm in its pledge to fortify the fund’s position, ensuring that its balance remains steadfastly above the US$300 million milestone. This dedication is exemplified through the fund’s recovery following Bitcoin’s price fluctuations in late March, which propelled the fund’s book value to an impressive US$380 million.
Bitget’s commitment to transparency extends to providing readily accessible wallet addresses for public scrutiny. Additionally, Bitget bolsters user assurance by consistently publishing verifiable Proof of Reserves data since December 2022, bolstering its reputation for security and reliability. Through these comprehensive measures, Bitget seeks to establish an industry-wide gold standard for transparency and trustworthiness.