Bit.ly is a sophisticated URL shortener. It uses a cookie to remember the last 15 links you've shortened and displays that history on the home page when you visit. It allows you to set up a custom URL ending for your link. It automatically creates 3 thumbnails for every page you save a link to.
Bit.ly also tracks clickthrough numbers and referrers so you can see what kind of traffic your shortcut got and from where. There's a simple API for adding Bit.ly functionality to any other web app and all the data, including traffic data and thumbnails, is easily accessible by XML feeds.
The bit.ly sidebar makes it simple to post links of the webpage being viewed to Twitter, Facebook
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