Important takeaways
- Bitget announced a $5 billion BGB token burn, removing 800 million tokens from circulation.
- BGB is up 100% in the past week, backed by a growing user base and increased trading volume.
Bitget, one of the fastest growing crypto exchanges, today announced a $5 billion burn of its original token, Bitget Token (BGB).
The proposal discussed in Bitget’s new white paper describes the burning of 800 million BGB tokens, representing 40% of its total supply.
At press time, the value of tokens burned has risen to over $6.4 billion, highlighting the growing demand for BGB.
The token burn, which has significantly reduced the circulating supply to 1.2 billion, is part of Bitget’s broader plan to enforce a deflationary model and increase the token’s utility
Starting in 2025, the crypto exchange will implement quarterly burning and use 20% of exchange and wallet profits to buy back and destroy additional tokens.
BGB is up over 100% in the past week and more than 400% in the past month, with the token trading at $8.10 at press time.
The token saw over $600 million in trading volume in the last 24 hours. Bitget’s daily trading volume exceeded $30 billion, and its user base expanded to 45 million.
“Our decision to burn BGB at a value of $5 billion is in line with our plans to make it a powerful medium for transactional value,” said Gracy Chen, CEO of Bitget.
The exchange recently merged BGB with the Bitget Wallet Token (BWB), combining its centralized and decentralized ecosystems under one token.
BGB, with a market capitalization of $11.6 billion, provides holders with discounts on trading fees, exclusive access to events and participation in Bitget’s Launchpool for token farming.
Bitget has a $600 million hedge fund and publishes Proof-of-Reserve reports as part of its transparency initiatives.
