Bitget Token Soars 15% as Bitget Plans to Burn 40% of Coin’s Total Supply
BGB, the native utility token of Bitget, has experienced a significant increase in value today following the release of an updated whitepaper detailing the token’s burn mechanism.
To provide some context, the Bitget Token (BGB) surged over 20% today, reaching a new all-time high of $8.500. This bullish trend has resulted in weekly and monthly gains of 102% and 421% respectively, deviating from the overall market trend.
Importantly, today’s surge was triggered by an announcement from Bitget regarding an updated whitepaper, specifically focusing on asset burns. The Bitget team has introduced a mechanism that allows for continuous and substantial burning of the BGB token, thereby generating positive momentum for the ecosystem’s native token.
Bitget plans to burn 40% of its total supply. According to the release, Bitget will soon burn 40% of its 2 billion BGB total supply (equivalent to $6.6 billion at the current market price). It is worth noting that during the token generation event (TGE), the core team reserved 40% of the ERC-20 token for itself, but it will now be burned with the new development.
Following the burn, the total supply of BGB will decrease to 1.2 billion, thereby enhancing the token’s scarcity. Bitget has stated that the incineration event will take place at a later date and that the team will provide proof of this significant milestone on the blockchain.
Furthermore, Bitget has introduced a periodic burn mechanism. Under this system, the exchange will allocate 20% of its quarterly earnings to purchasing and burning the BGB token. This process will occur on a quarterly basis, with Bitget sending the specified amount in BGB to the burn address. Bitget has also emphasized that it will notify the crypto community of each incineration event.
It is important to note that the Bitget token is now officially the unified utility token in the Bitget ecosystem. Yesterday, the exchange announced its decision to merge the asset with the Bitget Wallet Token (BWB), thereby establishing BGB as the ultimate token for both the exchange and the self-custody wallet.
As a result of its bullish momentum, BGB has climbed the ranks in the cryptocurrency market. With a market capitalization of $11.6 billion, the Bitget Token now holds the 16th position among cryptocurrencies. In its ascent, BGB has surpassed notable assets such as Polkadot (DOT), Stellar (XLM), Litecoin (LTC), and Pepe (PEPE). Furthermore, larger assets like Sui (SUI) and Shiba Inu (SHIB) now face the possibility of being overtaken if BGB’s bullish momentum continues.
At the time of writing, the Bitget Token is trading at $8.33, experiencing a slight correction from its new all-time high of $8.50.