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Bitget Burns 800M BGB Tokens, Reducing Total Supply From 2B to 1.2B
12/31/2024 02:55
The $5B burn of the native token follows a recent decision by Bitget to merge the BWB with the BGB tokens to enhance user experience.
Key Notes
- Bitget Exchange announced that it will use 20 percent of its quarterly profits to repurchase and burn BGB tokens.
- The BGB token has been one of the leading gainers this year fueled by deliberate market improvements.
Bitget cryptocurrency exchange, a top-tier cryptocurrency exchange by globally registered users and daily average traded volume, has announced the first burn of its native token BGB.
According to the announcement, Bitget has effectively reduced the supply of BGB tokens by 40 percent to 1.2 billion today. The 800 million token burn, which is worth about $5 billion based on the current market value of BGB, will be a major boost to the remaining tokens in circulating supply.
In order to further strengthen the BGB token, amid the anticipated parabolic altseason rally in 2025, Bitget intends to use 20 percent of its quarterly profits from its operations to repurchase and burn BGB tokens. As a result, the cryptocurrency exchange will empower the BGB token holders through calculated revenue sharing in a similar manner to Binance Holdings and its BNB quarterly burns.
The 800 million BGB token burned today was fetched from 19 percent of the core team and 21 percent from the circulating supply and additional core team reserves.
“This initial burn, with a substantial contribution from the core team’s holdings, is an example of our belief in attaining success with the interests of our community. With the reduction in supply, BGB signifies the foundation of a stronger and more resilient ecosystem that benefits all stakeholders,” Gracy Chen, CEO at Bitget, noted.
The move is geared toward enhancing the mainstream adoption of BGB tokens in the Web3 ecosystem. Moreover, the Bitget team intends to integrate the BGB token with Bitget Pay, and Bitget Card and eventually partner with more PayFi companies to enhance the overall token’s utility.
Market Impact of the BGB Token Burn by Bitget
The first BGB token burn happened a few days after the cryptocurrency exchange announced the completion of a merger between Bitget Wallet Token (BWB) and BGB to enhance user experience. As a result, the BGB token is expected to grow exponentially as the sole native financial tool in the Bitget ecosystem.
With the Bitget exchange enjoying more than 45 million global users and the Bitget wallet over 60 million customers, the BGB token is well positioned for enhanced mainstream adoption. Additionally, BGB holders are eligible for trading fee discounts in addition to access to token rewards from new project launches.
The mid-cap altcoin, with a fully diluted valuation of about $12.7 billion and a 24-hour trading volume of around $9.4 million, has been a top-performing altcoin in the recent past. In the past four weeks, BGB price has rallied more than 300 percent to trade at about $6.38 on Monday, during the mid-New York trading session.
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