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Bgogo intends to offer what are essentially IOUs on tokens from Algorand, a project only slated to launch in June.
Digital currency and transaction platform Algorand has refused to endorse an attempt by cryptocurrency exchange Bgogo to sell its unreleased tokens, executives confirmed on social media on April 8.
Algorand, which intends 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 are genuine in a blog post.
Known as an “initial exchange offering” (IEO), the Algorand event notionally allows Bgogo traders to purchase exposure to the platform’s token, despite the fact that it does not yet exist.
Bgogo will set an arbitrary price for the tokens, essentially trading an IOU ahead of the official release.
According to Algorand, however, the exchange has not entered into any form of official agreement with the company, and its efforts are not condoned.
“To be clear: The (Algorand) Network has not yet launched and there are no token sales,” executives wrote on Twitter.
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