BGB(Bitget Token) Review: Development History, Market Performance, and Investment Analysis

Author: Crypto Frontline (Sugar Brother) @Xxoo3k5k

Recently, Bitget's platform currency BGB has risen against the trend, and the increase is staggering. Some people in the author's communication groups regret not getting on board. On December 27, Bitgte announced that it would destroy BGB worth more than 5 billion US dollars. Influenced by the news, the price of BGB reached the ATH of 8.49 US dollars that day, and the market value once exceeded the 10 billion mark.

On December 30, Bitget announced the completion of the destruction of 800 million BGB (accounting for 40% of the total supply, with a value of over $5 billion), and the total market value dropped to about $8.9 billion. The destruction plan of BGB is based on the newly released white paper. The entire plan includes this destruction and the quarterly destruction plan. In the future, 20% of the profits of Bitget's exchange and wallet business will be used to repurchase and destroy BGB every quarter to implement the BGB deflation model commitment, which is further beneficial to the market.

This series of market performance and measures has made BGB the focus of the industry recently and has attracted widespread attention from the market. This article will review the development history of platform coins and BGB's recent market performance data to help readers analyze the logic behind BGB's rise, and analyze its future trends and whether there are still investment profit opportunities.

1. Symbiotic Evolution of CEX and Platform Coins

In the complex ecosystem of cryptocurrency, CEX (centralized exchange) and platform coins are like spirals that rise synchronously, driving each other and developing in synergy. As the core hub of cryptocurrency trading, CEX provides investors with an efficient and convenient trading environment, gathering massive funds and trading flows. In the process of development, CEX launched a series of innovative financial products to attract more investors, and platform coins came into being in this process.

Platform coins were initially used to meet the internal trading needs of exchanges, such as deducting transaction fees. With the continuous development of the market, the functions and values of platform coins have gradually diversified, and they have been given more application scenarios. For example, users can use platform coins to participate in various activities of the exchange, such as voting for listing, subscribing to high-quality project tokens, etc. In the voting for listing, users holding platform coins can vote for the projects to be launched according to the number of coins they hold. If the project is successfully launched, users may receive certain rewards, which not only enhances the user's sense of participation in platform governance, but also provides users with additional income opportunities. In addition, some platform coins have begun to get involved in the field of decentralized finance (DeFi), providing users with financial services such as lending and staking.

The core value of the platform currency can be summarized as follows:

- Platform coins can be used to pay for various transaction fees on the exchange, such as transaction fees, withdrawal fees, etc. This is the most basic and common application of platform coins. By holding platform coins, users can enjoy a certain discount on transaction fees, which can save a lot of transaction costs, especially for frequent traders.

- Platform coins can be used to participate in various activities of the exchange, such as voting for listing, subscribing to new project tokens, etc. This provides users with the opportunity to participate in the development of the exchange and obtain additional income. For example, users can vote for their favorite projects to be launched on the exchange. If the project is successfully launched, users who participated in the voting may receive certain rewards, such as airdrops of the project tokens.

- Platform coins can be used to participate in decentralized finance (DeFi) activities on the exchange, such as lending, staking, etc. This provides users with the opportunity to obtain additional income through DeFi. For example, users can participate in the lending activity of the exchange by depositing platform coins. During the lending period, users can obtain lending interest, which is usually paid in the platform coins.

- Some platform coins have governance functions, which allow users to participate in the governance of the exchange and put forward suggestions for the development of the exchange. This enhances the user's sense of participation in the platform and provides users with a channel to influence the decision-making of the exchange.

- Platform coins can also be traded in the secondary market, and their price will fluctuate with the market. This provides users with the opportunity to obtain investment income through price fluctuations. However, it should be noted that the price of platform coins is also affected by various factors and may fluctuate greatly, which brings certain investment risks to users.

We can clearly see the interdependent and mutually reinforcing relationship between CEX and platform coins. The development and growth of CEX provides a broad application scenario and solid value support for platform coins, while the innovation and application of platform coins