After Months of Silence & $13 Million Later Crypto Exchange COBINHOOD Announces Shut Down
- COBINHOOD says shut down due to audit
- The crypto exchange says, will be opening on Feb 10 but crypto community doubtful
- COB token down 33.7% with a trading volume of $65 and an ROI of negative 100%
Cryptocurrency exchange COBINHOOD is shutting down for a period of a month, from January 10 to February 9, 2020, announced the exchange on Jan. 10 on Twitter.
COBINHOOD Exchange is shutting down and auditing all accounts' balances from Jan 10 to Feb 9 in 2020. It will be re-opened on Feb 10, 2020. All COBINHOOD users can then retrieve their funds accordingly. Please DO NOT make any deposits; it may result in permanent loss.
— COBINHOOD (@COBINHOOD) January 10, 2020
The exchange says it would be auditing all accounts balances during that period and will reopen on Feb. 10, 2020.
COBINHOOD users are advised to not make any deposits as it may result in “permanent loss,” and can retrieve their funds accordingly. However, the company didn’t give its users the time to do that as the website is showing the same notice.
Before this tweet, the last time the exchange interacted with its users was in May around the time when there have been reports of the platform making an exit scam.
There have been reports of the exchange filing for bankruptcy and appointing a liquidator to lay off its staff in May. This came just a few days after the company announced that its co-founder and CEO, Tai-yuan Chen hasn’t been working with the company since late April 2019.
COBINHOOD raised $10 million in a 2017 ICO while marketing itself as a “zero-fee” crypto trading platform, with promotions from actor Jamie Foxx.
Not long after the ICO, the company received a cease and desist letter from popular stock trading app Robinhood claiming COBINHOOD branding was “confusingly similar.”
The exchange then raised about $3 million in May 2019 for its DEXON initial coin offering (ICO). The day the DEXON tokens were to be scheduled to be unlocked, the company dumped its tokens and they said it had been rather just “a series of unfortunate incidents” causing COBINHOOD to be suspended.
The last updated price of DEXON has been $0.00615522 with no other data available on Coingecko. The native token exchange COB meanwhile is down 33.7% in the past 24 hours trading at $0.00031695, with an ROI of negative 100% and trading volume of $65.
Now, after months of silence, out of nowhere COBINHOOD has announced its audit. The crypto community, however, is rather doubtful that the exchange would be opening on Feb. 10.