BitGet To Create $200 Million Protection Fund To Protect Investors

BitGet to create $200 million protection fund to protect investors from market volatility for the next couple of years.

BitGet uses a stablecoin along with Bitcoin in the protection fund to combat the unpredictably high volatility of the cryptocurrency markets.

Crypto derivatives exchange BitGet will create $200 million protection fund to protect user assets with the ultimate goal of regaining investor confidence in the midst of a protracted bear market. Bitget has joined the growing group of cryptocurrency firms, like Binance, that have adopted a protection fund-focused strategy in an effort to win over investors’ trust.

The BitGet Protection Fund is made up of 6,000 Bitcoin (BTC) and 80 million Tether (USDT), which are currently worth $200 million. Given that the current crypto winter shows almost no signs of abating, Bitget promised to maintain the fund’s value for the following three years.

In contrast to BitGet, which decided to self-fund the entire protection fund rather than rely on a third-party insurance policy, Binance established its Secure Asset Fund for Users (SAFU) user protection insurance fund by allocating 10% of the trading fee. By the beginning of 2022, SAFU, which began in 2018, had a $1 billion valuation. Gracy Chen, managing director of BitGet, added these details while describing the recently established fund:

The protection fund will help us mitigate investors’ 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 kept safe.

The protection fund’s use of both stablecoin and BTC is justified by BitGet’s desire to combat the unpredictably high volatility of the crypto markets. BitGet put in place strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to prevent bad actors from using its services, further protecting investors.

In other news unlike BitGet, Voyager Digital, a crypto lending company, disclosed shortly after declaring bankruptcy that the proposed recovery plan might not be able to fully reimburse all of its customers.

Voyagers,

We understand how critical it is to get access to the value in your account and we are working through this process as quickly as possible to do just that. Today’s post provides an update on customer cash and crypto, and next steps: https://t.co/yBlVB0qgVp (1/6)

— Voyager (@investvoyager) July 11, 2022

Voyager’s proposed recovery plan calls for paying back users’ funds worth approximately $1.3 billion upon court approval using a combination of Voyager tokens, cryptocurrencies, “common shares in the newly reorganized company,” and money from any proceedings with Three Arrows Capital (3AC).

The plan is subject to change, negotiation with customers, and ultimately a vote […] We put together a restructuring plan that would preserve customer assets and provide the best opportunity to maximize value.

-stated the lending company

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