Bitget 40% BGB Token Burn Signals Major Shift in Exchange's Strategy

Crypto exchange Bitget has announced that it has completed the intial burn of 800 million of its native Bitget Token (BGB), equivalent to 40% of the total supply, valued at approximately $6.8 billion.

This move, which reduces the total number of BGB to 1.2 billion, is the first major token burn for Bitget. The exchange has also unveiled plans for a quarterly burn programme starting in 2025, where it will allocate 20% of its profits to buy back and burn BGB tokens.

Gracy Chen, CEO of Bitget, explained the rationale behind this decision: “This initial burn, with a substantial contribution from the core team’s holdings, is an example of our belief in attaining success with the interests of our community. With the reduction in supply; BGB signifies the foundation of a stronger and more resilient ecosystem that benefits all stakeholders.”

BGB had surged 100% in the past week and over 400% in the past month. At the time of writing, BGB was trading at $8.10, with a market capitalisation of $11.6 billion.

This token burn comes on the heels of Bitget's recent merger of BGB with its Bitget Wallet Token (BWB), aimed at unifying its centralised and decentralised ecosystems under a single token. The exchange has stated that this move is part of a broader strategy to enhance the utility and scarcity of its native token.

Bitget has experienced substantial growth recently, with its daily trading volume exceeding $30 billion and its user base expanding to 45 million. The exchange maintains a $600 million Protection Fund and publishes Proof-of-Reserve reports as part of its transparency initiatives.