With the ultimate goal of regaining investor confidence in a context of bear market, crypto derivatives exchange Bitget has launched a $200 million fund to safeguard user assets. Bitget joins the growing list of crypto companies, such as Binancewho have taken an investor-centric approach to gaining investor confidence through protection funds.
The Bitget Protection Fund includes 6,000 Bitcoin (BTC) and 80 million Tether (USDT), valued at $200 million at the time of writing. Considering the fact that the crypto winter is currently showing almost no signs of slowing downBitget is committed to securing the value of the fund for the next three years.
While Bitget has chosen to self-fund the entire protection fund without resorting to a third-party insurance policy, Binance has set up its user protection insurance fund, Secure Asset Fund for Users (SAFU), by allocating 10% of the trading fee. As of 2018, SAFU reached a valuation of $1 billion by early 2022. Sharing details about the newly founded fund, Gracy Chen, Managing Director of Bitget, added:
“The protection fund will help us alleviate investor concerns and attract potential users. As we continue to endure the crypto winter, it is crucial that our users can rest assured that their funds are safe.
Bitget’s reasoning behind using a combination of stablecoin and BTC in the protection fund is to counter massive unforeseen volatility in the crypto markets. To further protect investors, Bitget has strict know-your-customer (KYC) and anti-money laundering (AML) policies in place to prohibit malicious actors from using its services.
Shortly after filing for bankruptcy, crypto lending firm Voyager Digital revealed that it may not be able to reimburse all of its customers under the proposed stimulus package.
We understand how critical it is to access your account value and we are working on this process as quickly as possible to achieve this. Today’s post provides an update on client money and crypto, and next steps: https://t.co/yBlVB0qgVp (1/6)
— Traveler (@investvoyager) July 11, 2022
Following court approval, Voyager’s proposed reorganization plan is to return user funds worth approximately $1.3 billion in a combination of Voyager tokens, cryptocurrencies, cryptocurrency, and cryptocurrencies. ‘”common stock of the newly reorganized company” and funds from any proceedings with Three Arrows Capital (3AC).
“The plan is subject to change, negotiation with customers, and ultimately a vote […] We developed a restructuring plan that would preserve client assets and provide the best opportunity to maximize value. said the loan company.