Trust Is What Brings People To Bitget
Bitget has recently celebrated our 5-year anniversary of magnificence. Our mission from the very beginning is always to advocate for the mainstream crypto adoption, because the world needs ‘an electronic payment system based cryptographic proof instead of trust’. However, beginners still need help to get themselves familiar with these technologies and procedures, so a trustworthy starting point is much needed.
Bitget Protection Fund
There are several ways to cultivate users’ trust, including the impenetrable proof-of-reserves discussed shortly. But we want to walk you through the 5Ws and 1H of the acclaimed Bitget Protection Fund, which lies at the heart of our user-centric approach, first, to help you understand its importance.
Let’s dive into the basic information:
• Why: After Terra (LUNA) and 3AC blew up, we realised it’s crucial to set up a fund for compensation and loss coverage in unwanted circumstances.
• When: Bitget Protection Fund was launched in late July 2022 with the initial committed value of US$200 million. After the FTX crash, we raised the number to US$300 million. Bitget is the first-ever CEX to announce a protection fund for users.
• Who: Bitget Protection Fund is self-funded by the leading crypto exchange Bitget to provide better protection for our 20 million users (and counting). If any user believes their account is compromised and/or their assets are lost (due to security breach), they are encouraged to file a claim. The Bitget team will conduct an investigation and inform them of the result as fast as possible
• What: Bitget Protection Fund is made up of highly liquid assets (BTC and stablecoins) with a value of no less than US$300 million. The fund is 100% financed by Bitget.
• How: We commit to maintain the promised value of the fund. Should there be a drop in BTC value, we will immediately send more stablecoins to the fund to ensure the US$300 million.
Below is a summary of Bitget Protection Fund’s value since its launch. While we make sure it’s always higher than US$300 million by depositing more stablecoins into the fund whenever Bitcoin prices fall too low, we also believe that Bitcoin, as the one true decentralised cryptocurrency, must be the main asset in the fund. As Bitcoin prices increase, we have removed a part of the stablecoin component, but the USDT value must always be higher than US$100 million as well. All numbers in this summary are in US-Dollar.
Besides the protection fund, we regularly update our proof-of-reserves, which shows how many assets Bitget actually has versus our users’ assets. The industry standard is 1:1 or 100%, meaning each CEX must have at least an amount of assets equal to users’ in their wallets to avoid the mishandling of users’ funds. The most common types of assets on Bitget are Bitcoin, Ethereum, and USDT. Starting from March 2023, we also provide data on USDC.
There are already 12 reports on Bitget Proof-Of-Reserves, and the summary is available below:
The lowest total reserve ratio is near 200%, which is two times higher than the industry standard, and the highest ratio recorded is 246%, or almost 2.5 times the required 1:1 ratio. Bitcoin, whose prices have been back and forth quite considerably since December 2022, has a significantly high reserve ratio of 518% on average. As for stablecoins, we hold a decent amount of USDT as the largest, most common stablecoin and hold a substantial amount of USDC, which we believe will gain more market share with growing interests from TradFi, especially the U.S.-based institutions.
To check out the monthly breakdown of each asset, visit Bitget Proof-Of-Reserves.
Our focus is users’ trust, and global expansion is the byproduct
The numbers don’t lie. Our monthly proof-of-reserves reports also show the amount of Bitget users’ funds in comparison to Bitget’s holdings; and by looking at those numbers, we can get a grasp of Bitget’s growth.
The amount of users’ deposits in Bitcoin and Ethereum have been on the rise consistently since the beginning of 2023, even amid the bear market. The number of Bitcoin deposited on Bitget rose faster in the first half of the year, and the year-to-date growth is 115%. The number of Ethereum deposits shows a jump from 5,075.97 ETH as of December 30, 2022 to 18,289.05 ETH as of November 02, 2023, which translates to an increase of 3.6 times.
When it comes to stablecoins, the USDC amount fluctuates more because of the depegging issues. Even though users’ combined USDT has never fallen below US$200 million, we can see somewhat of a downward trend for stablecoins starting from August that coincides with the spot Bitcoin ETF applications in the U.S. Interpretation: More are willing to trade Bitcoin and Ethereum and have therefore transferred their assets to their Bitget accounts.
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