tl;dr
Bitget, a crypto exchange, has conducted its first token burn, reducing the total supply of its native token, BGB, by 40%. This move aims to increase the token's long-term value. Bitget burned 800 million BGB tokens, worth nearly $5 billion, bringing the total supply down from 2 billion to 1.2 billi...
Bitget, a crypto exchange, has conducted its first token burn, reducing the total supply of its native token, BGB, by 40%. This move aims to increase the token's long-term value. Bitget burned 800 million BGB tokens, worth nearly $5 billion, bringing the total supply down from 2 billion to 1.2 billion tokens. The exchange plans to continue regular token burns, with a quarterly mechanism starting in 2025, using 20% of profits to repurchase and burn BGB tokens.
Additionally, Bitget announced the merger of its two tokens, leading to an all-time high for BGB at $8.49 and positioning it as the 25th largest cryptocurrency with a market cap of $8.56 billion.
Crypto exchange Bitget has completed the initial burn of its native token, BGB. This reduced the total supply of BGB by 40% in an attempt to increase its value in the long term. BGB is an ERC-20 token that operates on the Ethereum blockchain.
On December 30, Bitget announced that it burned 800 million BGB tokens, reducing the total supply from 2 billion to 1.2 billion tokens. The burnt tokens were worth nearly $5 billion.
Token burn is the process of permanently removing a certain number of cryptocurrencies from circulation by sending them to wallets where they cannot be spent or recovered. The move is an attempt to control the price of tokens. Many crypto teams burn tokens to keep up the demand, and the token price grows over time.
Bitget has also outlined a quarterly BGB burn mechanism which will commence in 2025. According to this plan, Bitget will use 20% of quarterly profits from exchange and wallet operations to repurchase and burn BGB tokens.
Separately, earlier this week, Bitget announced that it will merge its two tokens, Bitget Token (BGB) and Bitget Wallet Token (BWB). The news even pushed BGB to an all-time high of $8.49.
BGB was a top-performing coin in December, as its price rose by over 260% in 30 days. With a market cap of $8.56 billion, the Bitget token is now the 25th largest cryptocurrency.