digital currency and trading platform Algorand has refused to support an attempt to cryptocurrency exchange Bgogo will sell its unreleased tokens, executives confirmed on social media on April 8.
Algorand, which intends to launch its product in June together 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 theoretically allows Bgogo traders to buy exposure to the platform's token, even though it doesn't exist yet.
Bgogo will set an arbitrary price for the tokens, essentially exchanging a promissory note before the official launch.
However, according to Algorand, the exchange has not entered into any type of official agreement with the company and its efforts are not tolerated.
"To be clear: the (Algorand) network has not yet launched and there are no token sales," the 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 any important announcements.”
in a later postBgogo said it would now offer the tokens in the form of futures contracts, after learning of Algorand's reserves.
The original plans had raised suspicions among the cryptocurrency community, and Larry Cermak, head of research at industry news outlet The Block, going up a message apparently from Bgogo defending its decision to offer IOUs for non-existent tokens.
"We are a market to facilitate both parties," said part of the response, comparing the situation with Bitcoin (btc) exchanges that trade cryptocurrencies without the direct permission of the creator Satoshi Nakamoto.
Cermak publicly criticized Bgogo, while others compared selling to internships in exchange of colleagues HitBTC in 2017, when merchants were able bet on futures of alternative currenciesfor example Bitcoin Cash (BCH), before its release.
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