Bitget joins the growing list of cryptocurrency companies, such as Binance, that have taken an investor-centric approach to earn investor trust through hedge funds. Voyager cannot guarantee that all customers will receive their crypto as per the proposed recovery plan.
Bitget is a Singapore-based cryptocurrency exchange that specializes in derivatives. With more than two million users and four years of experience in the market, it has established itself as one of the most important exchanges. P2P trading, spot trading, copy trading, and futures are some of its outstanding services.
With the ultimate goal of regaining investor confidence amid a protracted bear market, crypto derivatives exchange Bitget launched a $200 million fund to save user assets.
The Bitget Hedge Fund comprises 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 currently shows almost no signs of slowing down, Bitget has committed to securing the value of the fund for the next three years.
Bitget Launch in Detail
While Bitget chose to self-fund the entire protection fund without relying on a third-party insurance policy, Binance established its user protection insurance fund, Secure Asset Fund for Users (SAFU), allocating 10% of the trading fee.
As of 2018, SAFU achieved a $1 billion valuation in early 2022. Sharing details about the newly founded fund, Gracy Chen, CEO of Bitget, added that, “The hedge fund will help us reduce 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 hedge fund is to counter massive unforeseen volatility in the crypto markets. To further protect investors, Bitget implemented strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to prevent bad actors from using its services.
About Voyager
It is worth remembering the fear provoked among clients when they learned that the bankrupt broker, Voyager Digital Ltd., will never be able to pay them back.
Following court approval, Voyager’s proposed recovery plan involves reimbursing user funds worth approximately $1.3 billion in a combination of Voyager tokens, cryptocurrencies, “common shares in the newly reorganized company,” and funds. of any proceeding with Three Arrows Capital (3AC).
“The plan is subject to change, negotiation with clients, and ultimately a vote. […] We put together a building plan that would preserve the clients’ assets and provide the best opportunity to maximize value.” the loan firm said.
By Audy Castaneda
