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Bitget Announces Token Burn; Token Price Surges by Over 20%
In a recent whitepaper announcement, Bitget, a prominent cryptocurrency exchange, revealed its plans to restructure its native token, BGB. The move aims to enhance the utility of the token ecosystem and streamline operations.
A significant aspect of this restructuring is a token burn, where 40% of the currently circulating supply will be eliminated starting from 2025. Currently, there are approximately 800 million tokens in circulation, valued at $6.8 billion. By decreasing the supply, the price of the token is expected to increase, which is the primary objective behind this measure.
Furthermore, Bitget has also decided to carry out quarterly burns, allocating 20% of its profits to repurchase BGB tokens from the open market and subsequently decrease the supply. This initiative will, in essence, reward holders of the token.
In related news, the exchange has announced a merger between its Bitget Wallet Token (BWB) and Bitget Token (BGB), with an exchange rate of 11.68:1. This simplification of tokenomics is expected to boost the utility of the token across both exchanges and wallet services.
The market response to these announcements has been overwhelmingly positive, as BGB’s price surged by over 20% in a single day. As of today, December 27, 2024, it has risen to become the 16th largest cryptocurrency by market capitalization, reflecting growing investor confidence.
Source: www.cryptonewsz.com
