Bgogo ICO Review: A Crypto Exchange by Community for Community
In a crowded space with lots of talk around various ICO’s and exchanges being developed, it’s refreshing to see lots of hype around one in particular - the Bgogo exchange (BGG).
It’s branded as an exchange built by the community, for the community. Bgogo is also the first digital exchange using a supernode listing authority, designed to list the highest quality digital assets.
They are doing everything right so far. They have a unique and interesting proposal, a very strong team in place, and have built a network of strategic partnerships.
So, what’s the hype all about?
I’ve put together this Bgogo ICO review to summarise all the numbers, stats, pros and cons, and provide some clarity on this innovative and interesting exchange on the horizon.
The Bgogo Project Solution
In regard to how far along this project is; Bgogo was established in 2017, and opened up exchange operations in April of 2018.
$10 million in seed capital has already been raised for the project, along with another $4.9 million in private sales.
The whitelisting process was open between the 12th July and 7th August, and 1,000 participants were chosen to take part in the genesis mining event.
As I mentioned in the opening Bgogo have some unique features that separate them from the ‘standard’ exchange model.
One such feature is Supernodes as they play a key role in supporting the Bgogo ecosystem. They are given the responsibility of listing the cryptocurrencies to list on the Bgogo platform.
The founding supernodes are selected from leading cryptocurrency institutions. They have a 90-day tenure, so a quarter of a year.
There are some criteria for re-election after a 90-day period. This takes into account a daily weighted calculation of BGG in user’s accounts, and subject to meeting the legal requirements the top 21 accounts will be chosen.
Another of the main differences between Bgogo’s ecosystem and other platforms that makes this exchange so appealing is the rewards and incentives for traders.
The negative fees on transactions is completely off-the-wall compared what’s seen as the standard for crypto exchanges.
The supernode system has sparked some interesting discussions too. Supernodes have listing authority and a share 20% of the trading fees.
It’s interesting to note too that every 24 hours all of the trading fees are used to repurchase BGG tokens.
The team behind Bgogo are selling their exchange as one that puts quality over quantity. Not just how the currencies are chosen, but they claim their infrastructure is fast and reliable.
Talking of the team, they have assembled a 35+ strong team of experienced professionals, along with a solid number of partnerships.
The only criticism at this point is the lack of depth in the whitepaper. It doesn’t go into enough detail about the technology that will power the exchange, leaving some tech-minded people with questions that haven’t yet been answered.
There is a hardcap of 6.7 million USD, and the total supply of BGG will be 10,000,000,000.
The breakdown for BGG tokens is as follows:
50% (5 billion) will be mineable by users through trading.
20% (2 billion) will be reserved for the future development of the ecosystem and daily operations.
20% (2 billion) will be reserved for the Bgogo team.
10% (1 billion) will be allocated among the first strategic investors and supernodes.
As you can see, there is a simple 50/50 split between mineable tokens and those allocated to other areas.
The mineable tokens will be mined over a 4-year period. With 105% trading fees returned to traders in just 30 minutes after a trade.
This percentage can change at the team's discretion but they have stated it will never be lower than 100%.
The 50% of the first tokens for the supernodes will be unlocked when trading is enabled on the exchange. The remaining tokens are dripped out at 10% per month.
For added security against fraudulent activities, there is an hourly and daily cap.
Bgogo has a team of around 35 people and growing. The founders have a wealth of experience having worked with some of the largest internet companies, such as Twitter, IBM, Facebook, Alibaba, and more.
Their core engineering team boasts a number of ACM International Collegiate Programming world champions. Not something every ICO team can claim, and relevant to the cryptocurrency space.
Here is a short biography for some of their key team members:
Maximilian Wang - CEO
Maximilian has worked PINT as lead developer and was an integral part of Facebook’s crypto syndicate launch. He has a Master’s degree in Computer Science, and a Bachelor’s degree in Electric Engineering and Automatic.
Oscar Song - COO
Oscar has a Bachelor’s degree in Finance from Renmin University of China and was previously the head of operations at Huobi.
Nicolas Chen - CTO
Nicolas also worked at Facebook where he was an engineer on the Instagram and WhatsApp security side. He has a Bachelor’s degree in Computer Science from Shanghai Jiaotong University.
Ciara Sun - CSO
Ciara has a Bachelor’s degree in Accounting and Finance and an MBA in Financial Analysis form the University of Indiana. She previously worked for Boston Consulting Group as a consultant.
Bgogo gained a huge financial and social boost recently, finalising a $10 million Pre-A and A round deal.
Strategic partnerships are important to the success of ICO’s. Not only do they provide additional resources and experience to the project, seeing a high-profile company attaching their name to an ICO adds confidence and validity to the project.
Bgogo has partnered with a number of well-known companies in the crypto-space, these include:
Pantera Capital - An investment firm that focuses on tokens, ventures, and other Blockchain and digital currency projects.
BlockWater Capital - A leading digital asset fund company investing and providing consulting support to Blockchain companies.
Genesiscap - As an affiliate of Genesis Trading, Genesiscap enables companies to borrow large amounts of digital currencies with fixed-terms.
IMO Ventures - An investing team with a great mission statement. They’re looking for start-ups in the blackchain realm pushing the limit of advanced technology to impact human life and the world around us.
Sky9 Capital - A China-focused venture capital firm that partners with innovative companies and projects specializing in internet technology.
DFG - A San Francisco-based Blockchain investment company focusing on consulting and investments.
Amber Ai - Specializing in Sophisticated machine learning, quantitative research, and best-in-class technology, Amber Ai works with a number of leading Blockchain companies.
FreeS Fund - A venture capital firm focusing on tech startups in the US and China.
Metropolis VC - One of the first Asian Blockchain investment companies and specializing in bringing value-added resources to companies they work with.
DFund - A Singapore-based venture capital firm focusing on investing in Blockchain infrastructure, protocol, and applications.
BlockVC - A leading Blockchain investment and advisory company that focuses on Blockchain-related technologies like tokens, projects, and venture.
Hashed - A Korean-based Blockchain-focused investing company with experience and reach in the Asian and Korean markets.
Node Capital - One of the earliest investors in the Blockchain industry. Node Capital’s goal is to connect every node in the Blockchain industry through project investments.
8 Decimal Capital - A Blockchain tech venture capital firm with an interest in strategic ICO’s and financing the Blockchain revolution.
PreAngel - With investments in more than 300 tech companies, PreAngle has a considerable presence across China and the US in particular.
Arrington XRP Capital - A US-based digital asset management company focusing on Blockchain-based capital markets.
DHVC - A venture capital firm focusing on investing in tech startups and companies in their growth stage.
Token Symbol BGG
Token Type ERC- 20
Whitelist / KYC Yes
Hard Cap $6.700.000
ICO Price $0.0067 (0.00001500 ETH)
Available for Token Sale 10%
Total Token Supply 10.000.000
Accepted Currencies ETH
The team has not provided a roadmap
Bgogo has a strong team behind the project with a wealth of industry experience mixed in with extensive professional backgrounds. This is a huge positive, and one of the best driving forces behind other successful ICO’s.
They already have a large number of strong partnerships and backers.
They have a unique idea that has resonated with people as solving a pain point and have brought some interesting and thought-provoking discussions to the table.
The token metrics are very reasonable, and compared to other ICO’s the hardcap is small which is appealing.
There is a good balance of demand for tokens with the daily buyback mechanism, and if liquidity is strong it’s reasonable to assume the project will gain traction quickly.
They share the same problem as most cryptocurrency exchanges being launched now - the competition is strong and there doesn’t seem to be a shortage of ICO’s with strong teams and partnerships.
While the buyback mechanism is good for demand, it makes it less likely that these tokens will be listed on other centralized exchanges.
The system leans towards helping the rich become richer by electing supernodes based on the number of tokens they have and having the 20% trading commission in place.
There has been some criticism around the whitepaper for the project. It doesn't go into detail regarding the technology and leaves some questions unanswered.
They don't have a roadmap meaning that investors don't know what to expect and when.