Bitget is charting a new deflationary course for BGB, its native token with a quarterly burn program.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Bitget, a prominent crypto exchange, has gained significant attention within the crypto community with an ambitious plan. As reported by The Block earlier today, the exchange revealed its intentions to burn 40% of its native Bitget Token BGB $7.77 24h volatility: 0.7% Market cap: $9.42 B Vol. 24h: $474.52 M . This totals about 800 million tokens worth over $6.8 billion.
This bold step aims to increase scarcity and increase the token’s value. It aligns Bitget with the growing trend of token burns that have helped other exchanges boost their token prices.
The exchange’s decision to burn a large chunk of its token supply is about creating long-term value for its users and investors. By reducing the circulating supply of BGB, the exchange hopes to initiate a supply crunch. This strategy could make the token more attractive to buyers.
The exchange has committed to using 20% of its quarterly profits from its trading operations and crypto wallet division. This reserve will be used to buy back and burn the BGB tokens. This latest quarterly burn plan is set to begin in 2025. Over the years, this strategy has been successful for other competitors, including Binance.
The exchange’s move shows its commitment to a more sustainable, value-driven ecosystem. The crypto space has become highly competitive, with exchanges fighting for dominance. Reducing token supply amid increasing demand through burns is now a smart tactic for boosting market confidence.
In a separate but equally significant move, Bitget is merging its Bitget Wallet Token (BWB) into its main Bitget Token (BGB). This merger means the exchange and its crypto wallet will now operate under a single token, streamlining the platform’s ecosystem.
The unification of the tokens will not affect the total supply of BGB. Instead, the platform has set the exchange rate for the merger at approximately 11.68 BWB for each BGB. Users holding BWB will see their tokens swapped for BGB at this rate, simplifying how they interact with the platform.
This move makes sense for Bitget as it works toward building a more seamless and cohesive experience for its users. Now, users can manage exchange and wallet functions with one token, enhancing their overall experience on the platform. This move reflects Bitget’s commitment to user convenience and operational efficiency.
Along with the merger, the trading platform released an updated whitepaper for BGB. The document outlined the token’s future and role within the Bitget ecosystem. This update highlights Bitget’s focus on transparency and innovation in the fast-changing crypto world.
With the merger strategy, the exchange is positioning itself as a firm ripe for the next wave of mainstream crypto adoption. Investors and traders closely watch how these changes impact BGB’s performance in the coming years.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
