Bitget and its over $368 million Protection Fund
Bitget, a crypto-exchange, has announced that its Protection Fund has reached a record high of over $368 million in July 2023. This fund has been in place since August 2022 and has consistently maintained reserves above $300 million since November 2022.
Key points:
– Established in August 2022 with a value of $200 million, Bitget’s Protection Fund serves as a proof of reserves for the crypto-assets held by the exchange.
– The fund provides financial protection for users in case of unforeseen incidents, hacking attacks, or extreme market conditions.
– In November 2022, Bitget increased the value of the fund to over $300 million by including a diverse portfolio of highly liquid cryptocurrencies.
– The Protection Fund has remained at $300 million since then, with a record high of over $368 million in July 2023.
Bitget and its Protection Fund in the form of Proof-of-Reserve (PoR)
Bitget aims to be a transparent platform and regularly publishes the status of its Protection Fund as Proof-of-Reserve (PoR). This monthly valuation report provides maximum transparency on the fluctuations in the fund’s value and ensures trust and confidence among users.
Key points:
– The value of the Protection Fund is insured against any decline for a period of three years, without any withdrawal.
– Bitget’s Managing Director, Gracy Chen, emphasizes the importance of transparency and believes that keeping customers informed is the foundation of trust.
– The PoR for July confirms that Bitget holds 223% of total reserves, which is more than the industry threshold of 100%.
– Bitget publishes the PoR every month along with the Merkle Tree test to ensure transparency and accuracy of information.
– The crypto-exchange has also introduced the Merkle Validator feature, allowing users to self-verify their accounts.
Hot Take
Bitget’s impressive Protection Fund of over $368 million demonstrates its commitment to financial security and transparency. By consistently maintaining reserves above $300 million, the exchange ensures that users’ assets are protected in any circumstances. Furthermore, the publication of monthly PoR reports and the introduction of the Merkle Validator feature reflect Bitget’s dedication to building trust and confidence in the crypto industry.
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