Cobinhood exchange shuts down – Cryptocurrency trading platforms are shutting down as fast as they’re getting launched these days. We recently reported the crypto trading exchanges market is dominated by the top 10 exchanges.
Obvious, Cobinhood exchange is not one of them, as the firm suddenly announced a permanent shutdown. The team sent out an email at 4:46 AM this morning (EST) informing users the Cobinhood is shutting down, effective immediately.
In the letter, the team thank supporters for their contributions to Cobinhood for the “past few years.”
Exit scam or stiff competition forced Cobinhood exchange to shut down?
What is odd, however, is the fact that the announcement comes in the middle of the night when the majority of the crypto community is fast at sleep.
The email states that the Cobinhood exchange will return on February 10, 2020 to allow users to withdraw their cryptoassets.
We can certainly expect the crypto community to scream foul play as they are awaken to the news. A Twitter use with the handle ‘@SandorReport’ accused Cobinhood of running an exit scam on a May 20, 2019 post.
Classy exit scam from @COBINHOOD & @dexonfoundation (same company). After raising $3M just last month (!!!), they unlocked all tokens, dumped on the market (!!!) and announced that they appointed a liquidator. Remember these people $DXN #Cobinhood $COB https://t.co/xUGJiUQBrr pic.twitter.com/ZUPyP2Bhg7
— TSS (@SandorReport) May 20, 2019
Why is Cobinhood holding users crypto funds for 30 days?
We are not entirely sure why users are not giving the opportunity to withdraw their crypto in advance. But, a statement from the email and on the website. They claimed Cobinhood is “auditing all accounts’ balances and migrating all data” before allowing withdrawals.
Cobinhood was co-founded in 2017 by Tai-yuan Chen, who also goes by “Popo Chen. He removed himself from the company in May 2019 after claiming “personal and investor disputes.”
Cobinhood exchange raised $10 million dollars from an initial coin offering (ICO) inOctober 2017, just one month after the fundraising campaign was launched. Cobinhood market itself as the “world’s first” zero-fee, high-frequency crypto trading platform.
What are your thoughts on Cobinhood exchange shutting down its door after been in operation for only a little over 2 years?
This is a developing story…we’ll keep you updated!
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.