The only good reason I can see for a solvent exchange to shut its doors is to pull an exit scam. The May 2019 incident, where Cobinhood allegedly pulled an exit scam after raising $3.5 million in a month, has dampened enthusiasm and volume for Cobinhood. Users complained about withdrawal issues throughout the summer. Cobinhood has a standard trading interface for desktop and mobile users. It’s generally easy to use and is user-friendly for both beginner and advanced traders.
The DEXON foundation and all team members still had their tokens. Due to media speculation and the recent incident, the value of DXN tokens had dropped by a huge percentage. Shareholders of the company had agreed that the token holders would all be well taken care of. As a result, they are working to figure this out and in a month, they would contact all unvested DXN holders. There was even a time they were all over media over rumors of bankruptcy a few weeks later, I don’t know how people missed the news and continued using the exchange. Unfortunately, we are subjected to objections and counter objections of this business and there is nothing anyone can do about it because they have made their decisions and no one to call them to order.
He had even seen reports that claimed the DEXON Foundation had filed for bankruptcy. Chen clarified that the company was not planning an exit and they had not filed for bankruptcy. The occasions that occurred at Cobinhood had every one of the signs of an exit scandal.
This, most likely, means that the exit scam was planned well in advance. Bitcoin is the first peer-to-peer digital currency, also known as cryptocurrency. It is famous for its decentralized transactions, meaning that there is no central governing body operating it, such as a central bank. Bitcoin News will help you to get the latest information about what is happening in the market. The bankruptcy claim of Cobbingham Digital Finance doesn’t affect Cobinhood for a very specific reason.
It is unclear if the DEXON team has any additional tokens to sell at this time. If that were to be the case, things could get rather what happened to cobinhood hairy in the future. In the case of Cobinhood however, the departure of an executive may have been the start of a wave of problems.
Exchange Cobinhood goes bankrupt, exit scam suspected
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You have to wait until a little over a month and hope that they are still there by that time. If you have funds sitting there, you can’t withdraw it for now. It is too long for them to audit but they should focus first for the withdrawal of their users before that. Yes, you read the title right so don’t deposit anymore there.
The DEXON Token Listing
They raised assets through an ICO and afterward made the declaration of the shutdown. The Dexon ICO happened a month ago and had effectively raised over $3.5 million. This is the place things begin to get somewhat murkier, since even as May 20th drew nearer, financial specialists still didn’t have any entrance to the token. In the meantime, exchanging outlines demonstrated a monstrous dump of the token, which brought about the cost falling by 85%. This occurred inside two or three hours, which seriously influenced the Cobinhood local coin .
- However, all of my access to the company was then immediately removed, including my email, slack, telegram and office badge.
- The company is a popular live streaming platform throughout Asia and has more than 5 million daily active users.
- FCoin, the China based exchange set up by the former CTO of Huobi, Zhang Jian began trading in early May.
- The Cobinhood saga comes just days after yet another exchange, COSS abruptly suspended trading on its platform.
Exchange tokens as a whole have been widely used, circulated, and battle tested. It currently has the highest transaction volume in the world, and it’s not even listed on CoinMarketCap.com. I mean, and not really regret, just kinda, like a missed opp. You know, like I passed on the opportunity where I could’ve done more research, I could’ve really looked into it.
I’m like well, if the cost of the coin goes up, and she’s like, what happens if it goes down? She’s like, no, I don’t wanna lose money, so make me money. Let me figure out how it works more, but, you know, sometimes, teaching a person who is, stuck in their ways about something new is very difficult so I advised her against that. Our company has been through a series of unfortunate incidents, causing COBINHOOD Ltd. announced its suspension on Monday, May 20th. Its mother company Blocktopia, Inc. then formed a smaller team to take over the daily operations that used to run by CONBINHOOD Ltd.
Cobinhood offers dozens of different trading pairs including major cryptocurrencies and minor cryptocurrencies. It’s one of the few places online where you’ll find COB trading pairs, for example. BCH, USDT, BCHSV, BTC, CMT, DAI, ETH, LTC, MIOTA, NANO, LSK, XRP, XMR, ZEC, ZRX, FXT, GUSD, KWATT, LALA, and a wide range of other tokens are all available for trading on the platform. Controversy aside, https://cryptolisting.org/ Cobinhood offers a wide range of trading options in a low-regulation environment. Spot trading, market orders, limit orders, stop limit orders, and other trading options are all available both in the browser version of Cobinhood and the mobile app. An extensive selection of trading pairs are available, including well-known major cryptocurrencies and dozens of minor, lesser-known tokens.
There appear to be numerous conflicting pieces of information regarding the Cobinhood cryptocurrency exchange. While it is evident for everyone to see the company is struggling, tales of its exit scam are vastly overstated. Moreover, there is plenty of DXN token drama, which also affects this trading platform at an unfortunate time.
All of these circumstances have also caused the Cobinhood token – known as COB – to go through a massive price decline. More specifically, the value per COB is down by over 60% across the board, in the past 36 hours. This in itself allowed even more people to believe Cobinhood had effectively pulled an exit scam and how they are now selling off their own tokens. However, the price of COB – both in ETH and BTC value – is rebounding as well after a rough day. There is still plenty of volatility, but the price has begun climbing higher again. Cobinhood would officially begin to downsize and reduce its active staffers to just 30.
A letter from Popo Chen
That in itself would not hinder the company’s day-to-day operations, nor would it reflect upon users in any way. Another clear warning sign something was amiss, although the service continued to operate as normal without too many problems. Users are still able to withdraw and deposit funds without hindrance, and that situation should not necessarily change in the coming weeks and months.
A guided tour introduces you to the interface for the first time. You can create market, stop, or limit orders and view exchange data from one display. Pick your market, then price the green “Exchange Buy” or the red “Exchange Sell” button to complete a trade. It’s not totally clear what happened with the DEXON Foundation. However, Cobinhood released a statement a short time afterwards that its day-to-day operations would not be affected. Months later, much of the exchange’s functionality is available again, although users reportedly had trouble withdrawing or depositing currency throughout the summer.
Still, before the whole situation, the team had launched DEXON, our biggest achievement. I’m still convinced that DEXON is the most efficient, most business-ready blockchain mainnet in the world right now. The incident later came to the public in early May, when the team had to explain why Popo is no longer in the company. Later on May 10th, I met with the other co-founder Wei-Ning, we both agreed that I should leave the financial issue to the court and back onto the team. On Apr. 26th, one of our institutional investors accused me, Popo Chen, for financial misconduct in a board meeting of Blocktopia, Inc.
Cobinhood still has not given the public an exact date when it will cease work. The continual spike in the price of BudBlockz has shifted many investors’ focus. Owing to the upward price movement in the crypto market…
The bankruptcy issue in May 2019 makes it even more difficult to trust Cobinhood, especially given that many users had deposit and withdrawal issues in the months following the incident. Cryptocurrency exchanges going bust is not a new thing, especially after the shutdowns witnessed during the crypto winter. But a recent bankruptcy filing by Cobinhood has raised some eyebrows and that too for the wrong reasons. It was no secret that the company was in financial trouble, but the company maintained that it was going through restructuring. There was the talk of laying off staff and other financial tightening measures, but there was no mention of bankruptcy. This is especially worrisome given the fact that the exchange just raised $3.5million successfully through the completion of the Dexon ICO last month, many in the industry are suspecting an exit scam.
Live INR to COB converter & Indian Rupee to Cobinhood calculator with 5 INR to COB price chart
The exit scam rumor might have been started because all these incidents happened just after the public sale of the DXN tokens. The incidents are unfortunate but it is not proof that there is an exit scam. Popo Chen concluded by congratulating all supporters of the project. Chen said that in recent day, he had seen media reports claiming that the company was in the process of orchestrating an exit scam.
Cobinhood’s partner company did declare bankruptcy and flood the market with tokens it had just sold during its ICO, although Cobinhood claims this had limited impact on their day-to-day operations. Aside from this major incident in May 2019, however, Cobinhood has had no major security incidents since launching in 2019. I don’t know anything about COB and had to look it up on coinmarketcap–is that what’s considered an IEO? It doesn’t look like Binance is going to go bankrupt or pull an exit scam anytime soon, but you never know with any of them. Digital currency trades becoming bankrupt is definitely not another thing particularly after the shutdowns saw amid the crypto winter.
Possible exit scam
But one of our managers for the website was from Asia and he had heard of cryptocurrency and bitcoin so he was more informed than I was. And so we allowed it, for the most part though, we just converted it back to cash unfortunately. Yeah, so, if I could go back in time and not convert that to cash, then sure I’d have a lot of bitcoin probably.