Bitget Announces Massive Burn of BGB Tokens: An Injection of Value into the Ecosystem

Major crypto exchange Bitget has shaken up the crypto market by announcing a bold strategy to boost the value of its native token, BGB. The company has revealed plans for a massive token burn, with the aim of drastically reducing the circulating supply. On December 27, Bitget released a new whitepaper for its native token, Bitget Token (BGB).

Bitget plans to burn no less than 40% of all existing BGB tokens, which amounts to 800 million units. In today’s money, this represents a staggering sum, in the billions of dollars. To put this plan into action, the exchange will implement quarterly burns starting in 2025, according to its information contained in the release official. The financing of these burns will come from a portion of the company's profits, more specifically 20% of the income from its operations and portfolio services.

“The new whitepaper lays out an ambitious token burn plan, starting with the immediate and permanent burning of 800 million BGB – 40% of the total supply – reducing the circulating supply to 1,2 billion. Starting in 2025, Bitget will initiate quarterly burns by allocating 20% ​​of Bitget Exchange and Bitget Wallet profits, including revenues from spot, futures and NFT transactions, to buy back and burn BGB. All burn activities will be recorded on-chain, ensuring transparency and accountability for the community.”

This deflationary strategy, as it is known in the market, has a clear objective: to increase the value of the BGB token. The logic is simple: with fewer tokens in circulation, demand (remaining constant or increasing) tends to increase the price of the unit.

Bitget Announces Token Merger

Bitget announced , on December 26, a significant change in its ecosystem: the merger of Bitget Wallet Token (BWB) with Bitget Token (BGB). This unification promises to further integrate the services of the centralized exchange with the decentralized wallet Bitget Wallet, opening up new possibilities for users.

In a strategic move, Bitget seeks to strengthen its ecosystem by consolidating its tokens into a single asset, BGB. The merger aims to enhance user experience by offering greater integration between platforms and expanding BGB’s use cases.

The news boosted Bitget token prices yesterday, which rose by more than 20% and set a new all-time high. However, the asset failed to sustain its upward movement and fell sharply today.

At the time of publication, the price of BGB was quoted at $7,69, down 8.3% in the last 24 hours. In seven days, the token has appreciated 71.4%.