Today, Cobinhood is known for its easy trading platform and wide range of coins. The exchange is also known for having limited regulatory oversight and due diligence. In May 2019, news sources began to report that Cobinhood and its sister company DEXON were facing bankruptcy and liquidation, seemingly based on insider information.

It’d be hard for them to tax it which is always appreciated. He’s incredibly adept at understanding blockchains and crypto and that whole world, you know. I mean, when I speak to him I feel like a small fish in a very, very, very big pond, but I’m trying. Sherman sat down with Business Insider’s Sara Silverstein to discuss his view of cryptocurrency. We’ve detected that JavaScript is disabled in this browser.

Chen earned his Master’s in Electrical Engineering at just age 22 after skipping his last year of high school to enter National Taiwan University . Before founding Cobinhood, Chen created a live streaming company called 17. The company is a popular live streaming platform throughout Asia and has more than 5 million daily active users. Following its ICO, Cobinhood founders allegedly had a dispute that culminated in one of them, Tai-yuan Chen, being kicked out of the company. The exchange claimed that Chen was suffering from emotional instability which was causing safety concerns for the employees.

Thus, before putting one’s hard earned cash into an ICO, take time to research and validate the credibility of the founders. The Cobinhood saga comes just days after yet another exchange, COSS abruptly suspended trading on its platform. The Singaporean exchange claimed that it was conducting maintenance of its systems and would halt trading for three to four weeks, a move that many interpreted as an exit scam. Popo Chen, one of the founders, reassured users in May 2019 that no exit scam was taking place. He blamed the upheavals on infighting between some of the institutional investors and the company’s management, an issue which they had since resolved.

what happened to cobinhood

The company discloses the names of three employees, including company founder Popo Chen. Cobinhood also links to each person’s contact information and LinkedIn profile. However, the exchange is less transparent about where it’s based, and it’s difficult to trust an exchange that requires users to go through limited KYC verification.

U.S. Treasury: Crypto Sanction Evasion “Nowhere Near” Cash Levels

Then after the company announced its bankruptcy, DNX price dived more than 85 percent. Niche crypto trading platforms, such as Cobinhood, have often been controversial for investors. The Taiwanese exchange is famous for a large choice of coins that investors can trade. Analysts believe that a great number of listed assets may be the sign of poor regulation.

what happened to cobinhood

This happened right after the DXN token sale, which only exacerbated the exit scam claims, although Chen maintains that the team didn’t sell their DXN tokens, which are now worthless. Cobinhood founder Popo Chen has taken to Medium to explain the closure of the platform, which was accused of exit scamming after it ceased operating in May last year following the Dexon token sale. Chen states that legal reasons prevented him from explaining the situation sooner, but that there was no exit scam or bankruptcy application involved. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities. Most sources have accused Cobinhood of carrying out an exit scam, though the truth will not become clear until next month.

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The fourth and one of the most important things to look for in an ICO is the business model. If it is a concept-only, non-existent product, then it probably won’t work. It is true that some new-age technology may need to be designed entirely from scratch, but promoters who want to raise millions of dollars should prove their project is worth investing in.

Both are straightforward and have similar designs to other major exchanges. Click the green ‘Buy’ button or red ‘Sell’ button on your desired pair. Without any further verification, you can already deposit and withdraw crypto and make trades. To deposit and withdraw USD, you will need to complete level two or three KYC verification, which requires submitting your passport or similar identification card.

We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. Starting Jan. 1, 2021, Cobinhood’s customer support will only communicate with clients through email. “During the whole process, no service specialist will be engaged for real-time conversation and everything will be done by email,” the announcement notes. According to an official announcement on Nov. 1, Cobinhood will change its customer service policy to get rid of real-time interactions with clients. Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Finally, big promotions may be another sign of an exit scam. Despite the recent sell-off in crypto, exchange tokens have held up quite well, as shown in the graph below. The foundation and the exchange have continued to function as usual.

Cobinhood Declares Bankruptcy. Analysts Suspect Exit Scam

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG. Popo further explained that there had not been a dump of the DXN tokens.

Since it was misled by false info, I agreed to cooperate with any legal investigation. However, all of my access to the company was then immediately removed, including my email, slack, telegram and office badge. DEXON Foundation, the co-founders and our team members still have all of our DXN tokens.

The mother company Blocktopia, Inc. then formed a smaller team to continue operations of DEXON Foundation and COBINHOOD Exchange. So far COBINHOOD Exchange and DEXON mainnet are both functional and not affected. They fleeced me out of a significant USDT value in cryptocurrency . This man should not be able to go down in history unscathed, this “show” of being legitimate and allowing users to withdraw their crypto is a farce. They are basically securities, much more like stocks than cryptocurrencies. It’s like buying pink sheet stocks — lots of those companies go belly up.

DEXON Foundation then dumped a huge number of tokens, causing prices to crash 85%. Cobinhood’s native token, COB also plummeted 50% during the incident. The internet lit up with reports that Cobinhood had pulled an exit scam.

Dormant crypto exchange Cobinhood to axe real-time customer support in 2021

The current status of Cobinhood’s operations remains unclear, as earlier this year, the exchangeannouncedit would be shutting down and auditing all account balances from Jan. 10 to Feb. 9. The exchange promised to resume operations on Feb. 10, but online data about the exchange shows that Cobinhood has been mostly inactive. The U.S. securities regulator announced that two Kraken entities had agreed to “cease offering or selling securities through crypto asset staking services” and pay $30 million in penalties. The liquidators say that while the two Three Arrows Capital founders have been active on Twitter and even working on a new exchange, they refuse to comply with a subpoena.

For a brief period, the employees were asked to work from home for their own safety. Despite the red flags, the Taiwan-based Cobinhood managed to raise over $10 million in its ICO. One of the factors was its partnership with Hollywood actor and singer Jamie Foxx, who endorsed the exchange’s ICO on his social media channels.

Taiwan-based cryptocurrency exchange Cobinhood is making significant adjustments to its customer service practices in 2021. Some users have already claimed they are unable to access their funds. Moreover, the exchange didn’t offer any guidance to those who own COB tokens, its native crypto. COB owners were to receive dividends from the profits that the exchange would make. The supposed profits would be from underwriting services for companies conducting ICOs as the Cobinhood exchange was a zero-fee platform. Cryptocurrency exchange Cobinhood is shutting down, purportedly for one month for auditing reasons.

Exchanges that don’t innovate to attract users will definitely be the next!! As the cryptocurrency market continues to evolve, investors are always looking for the next big thing. On the internet, there will always be some clams which are not factually correct. Some people state how Cobinhood has filed for bankruptcy, what happened to cobinhood which is not the case. It is true its parent company Cobbingham Digital Finance Co, Ltd has indeed filed for bankruptcy this week, although this will not cause Cobinhood to stop functioning. It is possible this bankruptcy rumor is the main reason why the price of COB collapsed, as can be seen above.

Moving forward, however, Cobinhood seems to plan to continue operating as normal. If you want a no-fee, limited-regulation trading platform, then Cobinhood is a decent option, although there’s certainly some risk involved. Popo Chen, the CEO of Cobinhood, quickly denied these rumors and insisted that the company was undergoing restructuring due to disputes around financial misconduct. Though the exchange was not explicitly shut down, users reported unsuccessful withdrawals during the summer, which the company attributed to technical difficulties. The highest Indian Rupee was trading against Cobinhood in the last 30 days was 1,642.59 COB on UTC which means the highest value for 5 INR was 8,212.95 COB. The lowest exchange rate in the last 30 days was 1,642.59 COB on UTC which means the lowest value for 5 INR was 8,212.95 COB.

In any case, an ongoing insolvency documenting by Cobinhood has raised a few eyebrows and that too for the wrong reasons. It was no mystery that the organization was stuck in an unfortunate situation however the organization kept up that it was experiencing rebuilding. There was the discussion of laying off staff and other monetary fixing measures, yet there was no notice of chapter 11. Right on the same day, the exchange declared bankruptcy and appointed liquidators, while the price of DXN plummeted around 80 percent on the news. A famous Taiwan-based crypto exchange Cobinhood has filed for bankruptcy and afterwards allegedly pulled an exit scam.

Even so, at the time, the company stated business would resume as normal, at least for the time being. Cobinhood has no trading fees whatsoever, including 0 taker fees and 0 maker fees. The company does have a withdrawal fee of 0.001 BTC, which is high compared to most competitors.

Please enable JavaScript or switch to a supported browser to continue using You can see a list of supported browsers in our Help Center. However, as a result of weeks of public disputes, COBINHOOD Ltd. had to announce its suspension to the authority on May 20th, and all its employees need to be legally laid off.

The events that happened at Cobinhood had all the hallmarks of an exit scam. They raised funds through an ICO and then announced the shutdown. The Dexon ICO happened last month and had successfully raised over $3.5 million.

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