Bitget Token Hits All-time High after $5B Burn Announcement

The Bitget exchange’s BGB token is soaring after the company announced plans to burn 40% of the total supply.

BGB surged as much as 23% to an all-time high of $8.45 before retracing. It trades at a fully diluted valuation (FDV) of $16 billion.

The price spike comes a day after Bitget announced a merger between its exchange token, BGB, and its BWB wallet token. The new BGB token is up about 525% since the beginning of December.

Bitget is the No. 7 exchange by 24-hour trade volume, with $4.3 billion, according to CoinGecko.

The newly merged token has an updated whitepaper that outlines what the exchange calls “an ambitious token burn plan,” beginning with the destruction of 800 million of the total two billion new BGB tokens.

In addition, there will be a quarterly burn of 20% of profits from the Bitget Exchange and Bitget Wallet, including spot, futures and NFT transactions.

Ambitious plans

It has been a year of exceptional growth for Bitget. The BGB token’s market capitalization jumped to $11.6 billion today from $836 million on Jan. 1, according to CoinGecko.

Wallet users have doubled since August to 60 million currently.

Bitget’s plans for the newly merged token are ambitious, starting with integrating it into decentralized applications (DApps) and public blockchain ecosystems, as well as making it a core asset supporting staking and lending protocols and decentralized finance (DeFi) applications.

It will also be used by Bitget Wallet to power services, including Fair Launchpool and gas fee payments, in addition to its current uses like fee discounts, VIP privileges, and token farming via Launchpool.