Bgogo Exchange, a new name to the digital asset exchange world, officially listed BGG/ETH and BGG/BTC trading pairs on September 16, 2018.
During Genesis Mining, where BGG was offered to the most loyal and supportive users at an unprecedented price cheaper than private sale investors, BGG underwent a heated and volatile stage followed by a leveled and steady progression. Currently, BGG has maintained a value three times the price of Genesis Mining.
On the first trading day, the total volume for the exchange surpassed $420 million USD. This is a noteworthy outcome considering the current market conditions overall.
What’s the Secret of BGG’s Success?
BGG has broken all the rules and conventions for initial coin offerings (ICOs). Bgogo’s mantra is the cryptocurrency exchange of the community, by the community for the community. Bgogo is paving the path to offer for common investors more to gain than the typical short-sighted beneficiaries such as project owners, institutional investors, and exchanges.
With its unusual yet captivating launch, BGG has set an example in the current standstill the cryptocurrency industry is in by redefining the concept of an ICO.
What’s Wrong with the Current ICO Model
ICOs offer investors an opportunity to profit by granting them exclusive access to blockchain projects at an early stage prior to the project’s debut.
ICOs should reflect the spirit of the blockchain community through a democratic, transparent and holistic culture.
However, the current and common ICO model has deviated from the practices blockchain enables and drifted into a world of scams and corruption. Some of these so-called “projects”, “exchanges” and “token funds” have taken advantage of current trends and utilize their resources to mislead and siphon money from common investors.
Currently, exchanges and pre-sale based institutions have the ability to secure stakes at lower prices. It is a given that project issuers possess a majority of their own tokens. The options available for the common investor are limited to the point where common investors are left to the will of institutional investors.
The industry will simply reflect what is being produced. If the current state of ICOs and trust in projects does not change, the industry will be buried.
BGG Abandons Traditional ICO Model
For the first time in the industry, the BGG positions of supernodes are published and updated regularly on Bgogo’s official website for the public. With this level of transparency, Bgogo aims to set an example to combat the current imbalance that is plaguing the industry.
Upon listing BGG on its platform, the 21 reputable institutions that make up the supernodes were granted access to their holdings. Thus far, most of the supernodes have held their allocations, refraining from selling them in the secondary market. Reputable institutions such as Sky9 Capital, IMO Ventures, Utopia Capital, Dfund and ICO Drops have actually increased their BGG positions.
DKB Fund, who previously decreased their holdings, lowering their supernode rank, rebought more than 7 million BGG tokens.
Institutional investors that choose to decrease their BGG positions within the first two months are not valued investors. It’s impossible for a project to create value in such a short time.
Institutional investors that conduct due diligence on their investments targets and can accept holding long-term, can truly experience the benefits from legitimate visionary projects. Institutions that adopt this outlook for projects would set a great example for common investors, otherwise what is the difference between an institutional investor and a common investor?
During Genesis Mining, which took place on September 15, 2018, more than 1,000 Bgogo community members were allocated an equivalent of 2,250 ETH at a price lower than what was offered to institutional investors. This completely broke all the conventions for the traditional ICO model which favors institutional investors by offering them a lower pre-sale price. Bgogo decided to rewrite the rules and offer an even better deal to the common investors.
Many users were able to participate in Genesis Mining. They were selected through a Bgogo “Proof of Care” (POC) contest where contestants showed their support through sharing and generating original content on social media. Bgogo received over 50,000 submissions representing 55 different countries, of which 1,000 outstanding entries were chosen and ranked. The POC contest did not only help build momentum for the launch of the BGG, but it cultivated a supportive diverse community.
Token Issuance as a Financing Tool in the Traditional Model
In traditional ICO models, tokens are often issued through fund-raising. Regardless of the financial status of a project, owners raise funds for the mere fact of just raising funds, among other questionable reasons. Fund-raising usually generates thousands of Ethereum, the most commonly accepted for funding blockchain projects.
EOS, a well-known project, raised about 7 million ETH within 350 days, an equivalent to $4.2 billion USD today. There are thousands of other projects similar to EOS, all to say that their intentions are typically hidden behind crypto and blockchain jargon in endless white papers and can simply run away with the funds raised.
Token Issuance as a Tool for User Growth
The Bgogo teams believe that the BGG token serves as the most important mechanism for user growth rather than fund-raising. To show this, Bgogo has adopted a practical outlook for financing its projects. Bgogo’s strict limits for the collective supernode allocations (15,000 ETH), which are subject to lock-up periods of up to 5 months, benefited Genesis Mining participants with a price lower than institutional investors with no lock-up period.
Within the first 24 hours of BGG trading pairs going live, exclusively on the Bgogo exchange, the trading volume surpassed $420 million USD with over 5,000 users online simultaneously. This traffic and liquidity are comparable to other in-house projects by industry giants. BGG has also reached stability at three times its Genesis Mining value. Community leaders have even volunteered to maintain and improve the spirit of Bgogo as it continues to grow.
Unique to the cryptocurrency exchange community, Bgogo’s implementation of trade mining has performed very well as reflected by BGG’s steady growth rate. A user from the community recently said, “Just like Google or Amazon stock, buying BGG at any time during the current stage is the right thing to do for the long term.” The BGG price will reflect the consistent growth in user base, increased trading volume, and the addition of high-quality assets.