If fire is fought with fire, can snow be fought with snow? This is the conclusion that the cryptocurrency exchange, Bitget has come to. In response to the ongoing, months-long ‘crypto winter’, Bitget has prepared a new investment product called Snowball. It aims to provide investors with a stable rate of return amid the volatile and recently uncertain cryptocurrency markets.

Bitget Launches Snowball to Fight Crypto Winter

Offering up to 24.5% Annual Percentage Rate (APR) while offering ‘principal protection’, Snowball aims to provide investors with lower-risk products in the ever-changing cryptocurrency market. Principal protection is a rule borrowed from the structured notes market, which guarantees the user that regardless of how the underlying asset performs, they will receive at least a partial return on their investment.

According to the official press release seen by Finance Magnates, Bitget's Snowball is not only an investment product but also a reflection of the company's philosophy to ‘Trade smarter’. Targeting a younger tech-savvy audience, Snowball is a financial product that is tied to the options market portfolio. It builds upon Bitget's existing ‘Earn’ feature to optimize returns while minimizing risk, promising higher yields.

“At Bitget, our commitment to empowering users with smart and secure trading solutions is unwavering,” Gracy Chen, the Managing Director at Bitget, commented. “With the launch of Snowball, we are redefining the crypto investment landscape.”

Targeting the youngest generation of investors is no accident. According to a study by Bitget a month ago, Gen Z dominates the crypto trading space, and 85% of investors from this generation are generating profits.

How Snowball Works

Snowball is designed to cater to both bullish and bearish investors. The bullish option focuses on protecting the principal while anticipating moderate or slight price increases within specific ranges. On the other hand, the bearish option is tailored for those who expect moderate or small price decreases within certain ranges.

The product operates based on an ‘observation period principle’, starting from when a user subscribes to Snowball until the yield is accumulated. During this period, Bitget observes so-called ‘knock-in’ and ‘knock-out’ prices, which dictate the level of yield an investor can expect. Users also have the option for early redemption based on the accumulated APR at the time of application.

“Snowball isn't just a product; it's a testament to our dedication to helping users trade smarter and more confidently in the dynamic world of cryptocurrencies. We believe that financial innovation should be accessible and safeguarded, and Snowball embodies this philosophy, providing users with a principled-protected, yield-optimizing, and flexible investment tool,” Chen added.

Bitget’s New Products and Markets

Over the past few months, Bitget has made headlines with strategic changes and collaborations. A couple of weeks ago, the company announced its integration with Copper's ClearLoop network, a move aimed at providing off-exchange settlement solutions to institutional clients. This partnership is designed to enhance the security of digital assets, reduce counterparty risks, and optimize capital efficiency.

Five years after its launch, BitKeep, a multi-chain non-custodial crypto wallet with 10 million users across nearly 170 countries, has rebranded to Bitget Wallet. This name change follows Bitget's acquisition of BitKeep and a subsequent $30 million capital injection earlier in March.

In the meantime, Bitget has initiated operations in downtown Dubai, hiring 60 new employees for various mid and back-office roles. The company is considering making Dubai its operational hub for the Middle East market. As part of its expansion strategy, Bitget is working on securing the necessary licenses and regulatory approval to open regional offices.

In July, Bitget launched a new product called 'Crypto Loans', catering to the increasing demand for digital lending solutions. This new offering is expected to attract users who have been dissatisfied with the credit options provided by traditional banks.

In May, after obtaining a virtual asset service provider registration in Lithuania, Bitget secured a similar registration in Poland. According to a press release, the crypto exchange aims to offer Polish users a more secure and transparent trading experience.