Bitget announces $5B BGB token burn as price rises 100% in a week
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Bitgate announced a $5 billion BGB token burn, removing 800 million tokens from circulation. BGB is up 100% in the past week, supported by a growing user base and trading volume.
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Bitget, one of the fastest growing crypto exchanges, announced today that it has raised $5 billion in its generation token, Bitget Token (BGB).
The proposal detailed in Bitget's new white paper describes the burning of 800 million BGB tokens, which is 40% of the total supply.
At the time of the press conference, the value of burned tokens has risen to more than 6.4 billion dollars, which highlights the increasing demand for BGB.
The token burn, which drastically reduced its circulating supply to 1.2 billion, is part of Bitcoin's broader plan to enforce a counterfeiting model and increase token service.
Starting in 2025, the crypto exchange will implement a quarterly burn, using 20% of exchange and wallet profits to purchase and redeem additional tokens.
BGB is up over 100% in the past week and over 400% in the past month, with the token trading at $8.10 at press time.
The token has seen more than $600 million in trading volume in the last 24 hours. Bitget's daily transaction volume has exceeded $30 billion, and its user base has grown to 45 million.
BitGate CEO Gracie Chen said: “Our decision to burn BGB at an estimated $5 billion is in line with our plans to build a powerful trading platform.
The exchange recently merged BGB with the Bitget Wallet Token (BWB), combining the centralized and decentralized ecosystem into a single token.
BGB, with a market capitalization of $11.6 billion, offers holders exchange fee discounts, exclusive event access and participation in Biget's Launchpool token farm.
Bitgate maintains a $600 million protection fund and publishes verification reports as part of its transparency initiative.
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