Polychain’s Crypto Exchange Claims Focus on Nonexistent Tokens

A Delaware Chancery Court judge mulled whether a cryptocurrency exchange provider breached its contract with hedge fund Polychain Capital LP when it failed to disburse “incentive tokens” to close a liquidity provider agreement.

The tokens aren’t currently available on any market. But they should be, Polychain’s attorneys said in oral argument Tuesday in a case against Shipyard Software Inc.

The argument highlighted the complexities of the cryptocurrency system and the feasibility of using intangible digital assets as consideration in contracts.

“If they don’t exist and they might never exist, it’s unclear to me how that can be valid consideration to ...