cryptocurrency exchange Bitget has announced that it will burn 40% of the entire BGB supply. This figure includes approximately 800 million tokens worth $6,8 billion. The burn will reduce the total number of BGB to 1,2 billion.
While this is the first withdrawal of tokens from circulation, the exchange plans to hold such an event every quarter starting in 2025. The company will allocate 20% of its profits from its operations for this purpose. These funds will be used to buy back BGB and then burn them.
On the back of this news, the token price rose by 23% to $8,36, and the market capitalization reached $11,7 billion.
The announcement of the exchange’s first-ever burn comes a day after Bitget announced it would merge the Bitget Wallet token (BWB) with BGB to create a single asset for its ecosystem. It will be usable for off-chain payments at restaurants, travel agencies, gas stations, and convenience stores starting in 2025.
Additionally, on December 27, the company announced an updated roadmap for Bitget Wallet, which will see BGB become the primary token for paying gas fees across multiple blockchains via the GetGase feature, coming in January 2025.
