Cryptocurrency Exchange & # 39; IEO & # 39; draws suspicion on plans to sell tokens before launch

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Digital payment method and transaction platform Algorand has refused to confirm an attempt by cryptocurrency exchange Bgogo to sell its unreleased tokens, executives confirmed on social media on April 8.

Algorand, which plans 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 in a blog post.

Known as a "first exchange offer" (IEO), the Algorand event allows BGogo merchants to logically purchase exposure to the platform token despite the fact that it does not yet exist.

Bgogo sets a random prize for the tokens, and in fact acts an IOU for the official release.

According to Algorand, however, the exchange has not yet entered into any official agreement with the company and the efforts have not been tolerated.

"To be clear: the (Algorand) network has not yet been launched and there are no token sales," wrote executives on Twitter. The post continued:

"All information to the contrary is incorrect. We will certainly keep our channels up to date 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 taking note of Algorand's reservations.

The original plans had led to suspicion among the cryptocurrency community, with Larry Cermak, head of research at the industry news bath The Block, upload a BGogo message that appears to be defending against the decision to offer IOU & # 39; s on non-existent tokens.

"We are a marketplace to facilitate both parties," says part of the response, comparing the situation with Bitcoin (BTC) exchanges that trade in cryptocurrency without the direct permission of maker Satoshi Nakamoto.

Cermak nuanced public criticism of Bgogo while others compared the sale to practices at fellow HitBTC exchange in 2017, when traders could gamble on altcoin futures, for example Bitcoin Cash (BCH), before they were launched.

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Don Bradman

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