What Bitget’s 40% Token Burn Means for BGB Holders?
Cryptocurrency exchange Bitget has completed the initial burning of its native token BGB. This reduces the total supply of BGB by 40% with a view to increasing its value in the long term.
BGB is an ERC-20 token that runs on the Ethereum blockchain.
All About Bitget Token Burn
December 30, Bitget Announce 800 million burned BGB tokenreducing the total supply from 2 billion to 1.2 billion. The burned tokens were worth nearly $5 billion.
“The completion of Bitget’s first BGB burn, which destroyed 800 million tokens (40% of the total supply), is a defining moment in our journey to build a sustainable and impactful token economy for BGB. This move This is in line with Bitget’s goal of creating long-term value for users by maintaining transparency and providing high utility to BGB,” said Gracy Chen, CEO of Bitget.
Token burning Is the process of permanently removing a certain amount of cryptocurrency from circulation by sending it to a wallet that cannot be used or restored.
The move was made to control the price of the token. Many cryptocurrency teams burn tokens to meet demand, and token prices grow over time.
For example, the price of memecoin Bunker Shares rose 25% in July after proposing to burn Bonk’s 84 billion tokens DAO treasury.
Bitget also outlined a quarterly BGB burning mechanism that will begin in 2025. Under the plan, Bitget will use 20% of quarterly profits from the exchange and wallet business to repurchase and destroy BGB tokens.
After each repurchase, the BGB tokens obtained will be destroyed by sending them to the destruction address.
Separately, earlier this week, Bitget announced that it would merge its two tagsBitget Token (BGB) and Bitget Wallet Token (BWB). This news even pushed BGB to a climax. all time high $8.49.
BrainGBB It was the best-performing coin in December, with its price rising by more than 260% in 30 days. On December 1, BGB was trading at just around $1.60. according to trading viewthe token was trading at $5.75 at press time.
The Bitget token has a market capitalization of $8.56 billion and is currently the 25th largest cryptocurrency.
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