Bitget, a cryptocurrency exchange, burned 40% of its native token, BGB, on December 30th. This action reduced the total BGB token supply from 2 billion to 1.2 billion tokens. The burnt tokens were worth around $5 billion. Grace Chen, Bitget’s CEO, stated that this token burn marks a milestone in Bitget’s efforts to create a sustainable and impactful economy for the BGB token. The aim is to increase the long-term value of the token by reducing supply, maintaining transparency, and its high utility. Token burning involves permanently removing some digital assets from circulation. These tokens are sent to addresses that are unspendable or unrecoverable. This action is taken to control token prices and maintain demand to increase their value over time. For example, after burning 84 billion tokens from the Bonk DAO treasury in July, the token price of Bank (BONK) increased by 25%. Bitget’s team announced that starting from 2025, a quarterly burning mechanism will be initiated for the BGB token, with 20% of the exchange’s and Bitget wallet’s quarterly profits used for buying and burning BGB tokens. Additionally, earlier this week, Bitget announced the merger of its two tokens, BGB and Bitget Vault Token (BWB). These moves have driven the price of BGB to its all-time high of $8.49 in recent days. Moreover, this token had the best performance in December, with over 260% increase. At the time of writing, the digital currency BGB with a market value of $11.32 billion ranks 16th among top digital currencies. Visit the real-time digital currency price page to monitor prices of all tokens and cryptocurrencies live.
