Bgogo

Apr 9, 2019

Bgogo intends to offer what are essentially IOUs on tokens from Algorand, a project only slated to launch in June. Digital currency and transaction platform Algorand has refused to endorse an attempt by cryptocurrency exchange Bgogo to sell its unreleased tokens 733 Total views News Digital currency and transaction platform Algorand has refused to endorse an attempt by cryptocurrency exchange Bgogo to sell its unreleased tokens, executives confirmed on social media on April 8. Algorand, which intends to launch its product in June along with its native ERC-20 token, issued a formal warning about the plans, which Bgogo has since confirmed are genuine in a blog post . Known as an “initial exchange offering” (IEO), the Algorand event notionally allows Bgogo traders to purchase exposure to the platform’s token, despite the fact that it does not yet exist. Bgogo will set an arbitrary price for the tokens, essentially trading an IOU ahead of the official release. According to Algorand, however, the exchange has not entered into any form of official agreement with the company, and its efforts are not condoned. “To be clear: The (Algorand) Network has not yet launched and there are no token sales,” executives wrote on Twitter. The post continued: “Any information to the contrary is false. We will be sure to keep our channels updated as soon as there are important announcements.” In a subsequent post , Bgogo said it would now offer the tokens in the form of futures contracts, after being made aware of Algorand’s reservations. The original plans had sparked suspicion among the cryptocurrency community, with Larry Cermak, head of research at industry news outlet The Block, uploading a message seemingly from Bgogo defending its decision to offer IOUs on nonexistent tokens. “We are a marketplace to facilitate both parties,” part of the response read, likening the situation to Bitcoin ( BTC ) exchanges trading the cryptocurrency without the direct permission of creator Satoshi Nakamoto . Cermak levelled public criticism at Bgogo, while others likened the sale to practices at fellow exchange HitBTC in 2017, when traders were able to bet on futures of altcoins , for example Bitcoin Cash ( BCH ), before they launched. 4  Comments This comment has been deleted Rinus   Earlier today, Bgogo have been informed by some of the early investors of the Algorand project that the Algorand team has warned them about breaching the terms in contract where the unvested ALGO tokens are not transferable, and a result in total token loss. 1. Bgogo will keep our promise and continue with the announced ALGO trading event. The difference would be now you will be trading an ALGO futures token. The date of delivery of the futures will be 4 weeks after the Algorand mainnet launches. 2. Bgogo will purchase ALGO tokens directly from the market out of our own pocket after the mainnet launch, at whatever the cost would be. In this way, the ALGO tokens are no longer directly from any of the early investors of the Algorand project. 3. In case of failure in delivering the token, Bgogo will buy back ALGO futures token holders at 2x the Price Limit trading price. Reply Ryan Evans   I posted a comment and it was deleted within seconds. Perhaps you guys should post rules on comments? Is it me, or when it says add comment it means we can comment? A little confusing. I usually share your stories on my FB crypto group of 20,000 folks, and the other that I participate on with another 60,000 traders. I guess I will never post your articles again, out of fairness. Take care. Reply