The largest cryptocurrency exchange in the world, Bitget, has announced that it would boost its Protection Fund to $300 million in order to further safeguard cryptocurrency customers. This is a part of Bitget’s bigger initiatives to boost market confidence in cryptocurrencies following the FTX crash, which caused consumers to suffer enormous losses. A $5 million Builders Fund to assist FTX users, as well as the Merkle Tree Proof of Reserves sharing scheme, which is now being developed and will go live in 30 days, are also part of the projects.

With the intention of protecting consumers’ cryptocurrency investments, the Bitget Protection Fund was introduced in July of this year. 200 million dollars, made up of 6000 BTC and 80 million USDT, were used to support its creation. Since the fund is entirely self-funded, it has more freedom and discretion to efficiently hedge user assets without the need for external bureaucracy or policy modifications.

The $300 million hedge fund will now invest in well-known, extremely liquid cryptocurrencies including BTC, USDT, and USDC. The exchange has agreed to keep the fund’s value locked in for the following three years without taking any money out. Bitget will keep hedging the position to make sure that the balance never drops below $300 million, even if the fund’s worth declines as the price of bitcoin declines. Users can view the addresses of the wallets here, and all information regarding the fund is available to the public in order to ensure openness.

Source: Prnewswire