ICO Review: Bgogo (BGG) – First Crypto Trading Platform with Supernodes
Posted by Chef
Bgogo is a cryptocurrency trading platform that differentiates itself as the first exchange to feature supernode listing authority.
Learn more: https://crushcrypto.com/bgogo-ico-review/
Project website: https://bgogo.com
White paper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf
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Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
What does the company/project do?
Bgogo is a cryptocurrency trading platform that differentiates itself as the first exchange to feature supernode listing authority. The platform currently has 45 trading pairs between various digital assets with Bitcoin, Ether and Tether with low maker and taker fees at 0.1%.
Bgogo also utilizes transaction mining, a new feature that is used by a number of exchanges (e.g. FCoin) whereby a portion of commission revenue is distributed back to token holders. Bgogo claims to have a higher utilization rate as it uses a buyback model where 100% of the commission revenue is used to repurchase BGG tokens.
A key discerning feature of Bgogo is its supernodes, which are elected on a quarterly basis based on the top 21 holders of BGG tokens, subject to vetting from the Bgogo team which includes KYC reviews on all candidates.
What are the tokens used for and how can token holders make money?
The BGG token is Bgogo’s native token and serves as the proof of stake for the platform’s trading infrastructure. BGG tokens should appreciate in value in the following ways:
– Increasing trading volume on the exchange will result in Bgogo collecting more commission revenue. This will enable them to buyback more tokens which are subsequently burned and the value of the remaining tokens will go up in value, all else equal.
– As popularity of the platform increases, the value of being a supernode will increase. Those who wish to become a Bgogo supernode will be incentivized to lock more BGG tokens during their tenure.
– Supernodes are unlikely to sell their tokens unless they plan to give up their supernode status in the next quarter. Currently, most of the large cryptocurrency funds are awash with liquidity, so we don’t expect the current supernodes are eager to reduce their BGG positions and give up the right to be a supernode. Each supernode has one opportunity to list a cryptocurrency of their choice on the exchange. This authority can be very valuable if Bgogo scales to be a top exchange.
– The daily buyback mechanism helps maintain demand for BGG tokens.
– The Bgogo team has a good mix of experience from the business and technical side, including experience from operating other cryptocurrency exchange.
– As there are no trading commissions for users, Bgogo could gain traction quickly if the liquidity is strong. This model could be sustainable in the long-term as the team intends to eventually make money by building “B Lab”, which will use the platform’s own fund to incubate and invest in projects to generate profits.
– Trans-mining is controversial and there is currently no proven example over a long period of time. Using all the transaction fees for buyback would result in the exchange seeking other source of cash flow to maintain operations, despite Bgogo having a healthy balance sheet now. Profits from investments done by B Labs can be quite volatile.
– There are numerous well-funded cryptocurrency exchanges being launched recently, so the competition is fierce.
– Compliance and regulation, something that can change dramatically overnight, is something that every exchange faces. A mitigation factor is that Bgogo only engages in crypto-to-crypto trading pairs.
– Because of the buyback nature, Bgogo tokens are most likely security tokens and it is unlikely that it would be listed on other centralized exchanges.
The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don’t invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.