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 surge in value following the release of an updated whitepaper detailing the token’s burn mechanism.
To provide some context, the Bitget Token (BGB) saw a surge of over 20% today, reaching a new all-time high of $8.500. This surge has resulted in weekly and monthly gains of 102% and 421% respectively, defying the overall market trend.
It is worth noting that today’s surge follows an announcement from Bitget regarding the update of its whitepaper, specifically focusing on asset burns. The Bitget team has introduced a mechanism that allows for continuous and significant burning of the BGB token, which has generated bullish momentum for the token within the ecosystem.
Bitget plans to burn 40% of its total supply in the near future. The current total supply of BGB stands at 2 billion tokens, which is valued at $6.6 billion based on the current market price. Notably, the core team had reserved 40% of the ERC-20 token for themselves during the token generation event (TGE), but they will now burn it as part of this new development.
Following the burn, the total supply of BGB will be reduced to 1.2 billion, thus increasing the scarcity of the asset. Bitget has stated that the incineration event will occur at a later date, and the team will provide on-chain proof of this significant milestone.
In addition, Bitget has introduced a periodic burn mechanism. Under this new addition, the exchange will allocate 20% of its quarterly earnings to purchasing and burning the BGB token. This will be a quarterly event where Bitget will send the specified amount in BGB to the burn address. Bitget has also mentioned that they will inform the crypto community about each incineration process.
It is important to note that the Bitget token is now officially the unified utility token in the Bitget ecosystem. The exchange recently announced that it would merge the asset with the Bitget Wallet Token (BWB), making BGB the ultimate token for its exchange and self-custody wallet.
As a result of its bullish momentum, BGB has climbed up the crypto ranking ladder and now holds the position of the 16th largest cryptocurrency with a market cap of $11.6 billion. 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) may face the possibility of being overtaken if BGB’s bullish momentum continues.
At the time of writing, Bitget Token is trading at $8.33, slightly correcting from its new all-time high of $8.50.
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