New “crypto-exchange community exchange created by community members for community development”. This is how the authors of the Bgogo ICO project characterize their trading platform.
A key feature of the service will be the use of supernodes with the authority to make decisions on the inclusion of new digital assets in the list of tradable ones. Users will be able to receive a discount of 105% from the trade commission in BGG tokens. All commission fees levied by the exchange for transactions made will be used to buy BGG coins and then destroy them. This will ensure the value and stability of the domestic exchange’s cryptocurrency.
The core of the group of specialists working on the project consists of professionals with experience in such giant companies as Google, Facebook, Twitter, and IBM. The concept is based on a completely secured and problem-free platform implemented by Jang Yibo, which has been working for more than 12 years in asset management, direct investment and other financial sectors in Hong Kong and mainland China. In addition, Bgogo is supported by the investment blockchain giant Pantera Capital, which officially announced strategic investments in this project.
The main development team consists of 35 people and includes several winners of major competitions of programmers:
- Maximilian Wang (CEO, received a Master of Computer Science degree from the University of California, San Diego, a former Facebook software developer, and founder of Facebook’s crypto syndicate, is a senior researcher in blockchain technology and an adviser, participated in the promotion of several popular blockchain projects in the Silicon Valley, such as QuarkChain).
- Nicholas Chen (technical director, received a bachelor’s degree from the Shanghai University of Transportation, the winner of the student programming competition ACM-ICPC International College Student Programming Competition Regional Champion, previously worked at Facebook headquarters in the United States, where he was responsible for maintaining network security in the social network itself, application WhatsApp and Instagram).
- Oscar Song (Chief Operating Officer, received a bachelor’s degree from the Renmin University of China, former head of the operations department of Huobi and co-founder of Gukebao).
- Ciyara San (chief security officer, previously worked for Boston Consulting Group and Deloitte Advisory, has extensive experience in financial analysis, strategic consulting and corporate management, winner of the 2018 Blockchain Consensys without Borders Summit Project.
The list of investors of the project includes a number of well-known venture funds:
- Pantera Capital;
- Node Capital;
- Sky9 Capital;
- Goopal Digital;
- Hike Capital.
Main features of the project
In fact, Bgogo is a crypto exchange, which uses so-called trans-mining or intellectual trading to create a user base. The business model incorporated in it stimulates large investors to accumulate the required number of BGG tokens to become a supernode. Owners of such nodes can participate in the selection of digital assets, which will be listed in trades on Bgogo. This will allow them to earn 20% of the commission charged by the exchange for trading operations with this token. This privilege of passive income is unlimited.
Unfortunately, the technical documentation does not provide any details about the technologies used, but some aspects of the economic model of the Bgogo exchange are described.
One of them is the long-term concept of the development of the trading platform. After creating the user base, the platform will be used to incubate and form a list of new ICOs created on the platform. This explains the fact that the project is not profit-oriented.
Owners of BGG tokens will have the right to pre-sale ICO allocations, developed on the platform.
Bgogo is the first trading platform that uses supernodes to compose a listing of tradable digital assets.
The platform provides for 21 supernodes. The bulk of them includes leading encryption institutions around the world. These objects will participate in the private sale of the BGG token. While playing a key role in the Bgogo ecosystem, each supernode will be entitled to “one vote, one list”, as well as an advantage of “lifetime” deduction of 20% of the commission for the listed coins.
Each supernode will function for about 90 days. At the end of each quarter, a new list of nodes will be re-elected from among the 21 best accounts in the BGG rating. Their owners will be required to pass a KYC check, and if necessary also check the platform team members to get a qualification. This is aimed at providing protection against possible violations of laws.
One voice, one list
Each supernode has the right to the powers that the authors of the project call “one vote, one list”. This privilege grants holders of this status the right to choose a crypto currency for registration on the Bgogo trading platform for the entire period of the status.
This is due to the fact that the selected crypto currency is tested and approved by the members of the exchange team. In the event that several supernodes compete for the listing of tradable assets of the same coin, the Bgogo administration reserves the right to choose the supernode, which will be given such an opportunity. Such a scheme will allow 21 new coins to be added to the list of tradable assets during each quarter.
Deductions from the trade commission
A fixed rate of 20% of the trade commission received from transactions with the supernode of the coin listed on the exchange will be paid to the owner of the site “for life”.
The mechanism of re-selection of supernodes
Every day at midnight a list of all individual accounts on the platform will be drawn up, on the basis of which supernodes will be re-elected. The daily weighted calculation of account positions by the number of BGG tokens will make it possible to make a rating of all coin holders by the end of each quarter.
The first 21 accounts from this list, which have been tested by KYC, will be eligible for supernode status in the next quarter. If the nominated candidate does not have this right or waives this privilege, it will be provided to the next owner of BGG tokens.
Responsibilities and responsibilities of supernodes
Owners of such nodes must comply with two main rules:
- All supernodes except for the first-generation nodes must blockchain their balance in the BGG tokens for the status assignment period.
- Supernode owners must exercise due diligence and ensure the authenticity, reliability and legitimacy of those crypto-currencies that they propose to be listed in the Bgogo Exchange traded assets. They are obliged to check the information received about digital tokens for false data and fraud, including financial “pyramids” and Ponzi schemes.
In the event that after registering a new token on the trading floor, the administration of the resource will identify any violations of this plan, it reserves the right to exclude this crypto currency and disqualify the supernode.
Mining through trading
Half of the BGG tokens (50% of the total) will be reserved for users and intended for mining, which will be carried out through the trade on the Bgogo platform. The number of BGG tokens, equivalent to 105% of the auction amount, will be transferred to the user 30 minutes after the transaction is completed.
The reserve fund has the right to adjust the discount rate as the exchange develops, but the authors of the project promise that the minimum discount will be 100%. The price of BGG will be determined by the market at the time of the close of trading. In total, two markets will function on the exchange: BTC and ETH. For all other coins, these crypto-currencies will play a major role in the formation of currency pairs.
Functions of fraud protection and enforcement of trade rules:
- In order to avoid premeditated trade by making deals to sweep the trading volume, the number of BGG tokens available for mining will be limited to the daily limit. Any transactions after the daily background is exhausted, will not be able to qualify for discounts.
- The total production of BGG will be limited daily for four years after the launch of the platform. Daily rewards will be distributed evenly throughout the day. Hourly it will be allocated 1/24 of the reserved amount.
- In order to prevent premeditated trade transactions, the Bgogo system will monitor the daily limit of $ 1 million, which will be subject to the right to a discount.
- After exhausting the daily limit, traders will no longer be able to receive BGG tokens before the next day.
- The administration of Bgogo reserves the right to change or cancel the program of discounts for mining before the completion of the Genesis Mining event, depending on the market situation.
The advantages and disadvantages of the project
Strengths of the Bgogo Exchange include:
- the combination of super-nodes and trade commissions for the purchase and burning of BGG tokens should create a solid foundation for the stability of the coin’s price;
- The project attracted a large number of supporters through the program of proof-of-care.
Disadvantages of the project can be considered:
- the lack of a description of the business model, technologies and road map in the White Paper;
- lack of experience of the project team in the creation or management of the trading platform;
- the issue of managing the exchange is also open, as the technical documentation does not contain exhaustive information (based on the information provided, there is no way to know whether the trade commission system and BGG tokens will be used, as the authors of the project promise);
- There is no unique offer or function that could allow Bgogo to gain a place in the market among a variety of other trading platforms.
- The first exchange, which provided users with a discount on the trade commission, was FCoin (80%). Bgogo, in turn, set the bar at 105%, which will give it some advantage until another platform offers an even more advantageous option.
Period and conditions of the Bgogo ICO
Official website: https://www.bgogo.com/
Telegram group: https://t.me/Bgogo
The authors of the project have already conducted a private stage. The main sale of BGG tokens began on July 14 and will last until August 14, 2018. At the time of writing the review, more than 90% of coins were sold at the rate of 1 ETH = 66,666 BGG.
The basic conditions of crowdsdale:
- the total number of tokens is 10 billion;
- the number of tokens for sale is 5 billion;
- standard token – ERC-20;
- Course – 1 BGG = $ 0.07 (1 ETH = 69,999.3 BGG);
- hard cap – $ 7 million;
- accepted currencies are ETH.
Bgogo means that the exchange is likely to attract a lot of new users after the launch. However, the results of the analysis of the project indicate that its long-term prospects are still uncertain.
The most serious concerns are caused by meager technical documentation, in particular, the lack of a description of the management system. Equally important is the ability of the exchange to withstand many competitors.
Of course, BGG tokens can provide their owners with some trading opportunities in the short and medium term. But before investing in this project, it is worth considering that in the long term this trading platform will be vulnerable to competitors if it can not stand out as unique features or offers.