Cobinhood Files for Bankruptcy as Struggles Leave Many Wondering If an Exit Scam is Imminent
- Cobinhood reported financial troubles, cutting down staff to 30 individuals.
- Conflicting reports fed into rumors that Cobinhood is an exit scam.
Cobinhood is in a rather uncomfortable position right now, and there are many views on what is actually transpiring, starting with an article from NullTX. One of the founders of this platform recently left the company, though there are rumors that he was fired.
Regardless, the departure was enough to spur many new questions regarding the way that the trading platform would now operate. In the crypto industry and others, founders of companies leave relatively frequently, and those businesses go on to do just fine.
With Cobinhood, there are many people that believe that this action was a catalyst to a much bigger issue. There are allegations that the co-founder had to leave as a result of “emotional inestability and liable personal behavior,” though there’s been no confirmation of the claims.
Despite raising millions of dollars in an initial coin offering for the company, there’s also been sources who state that the company will need to handle certain problems in their finances soon.
Unlike the allegations against the co-founder, the financial issues were confirmed by Cobinhood, suggesting that there is enough funding in place to last for two more years, but that customer funds were not impacted. Still, that detail is enough to plant a seed of doubt in their users, even with the claims from Cobinhood that business would continue in the same routine, at least for now.
Last week, a new development caused stir again – Cobinhood decided to downsize the staff to just 30 people, giving them the reduction that the platform needs to keep going. The users would not be impacted, and daily operation would remain about the same. Users even are maintaining the same ability to withdraw and deposit funds like before.
There is a little more to this story to get to the current rumors of an exit scam. Cobinhood is a provider of ICO services, which led the DEXON team to partner with them to launch their own campaign. The team succeeded, quickly raising $3 million towards their efforts, and the DXN token was subsequently listed on the Cobinhood trading platform, letting the team sell their own tokens.
The token declined at a fast pace, placing the trading platform in a bad light. The Cobinhood token – COB – took a beating as a result as well, and the price dropped by over 60% within less than two days.
This drop has spurred rumors that Cobinhood is no more than an exit scam, which CryptoSlate believes is happening. From their perspective, the company filed for bankruptcy, followed by an exit scam, running off with their profits. While there is some truth in that rumor, the narrative may be a little off.
NullTX reports that the parent company of Cobinhood – Cobbingham Digital Finance Co, Ltd. – is actually the entity filing for bankruptcy, though the trading platform shouldn’t be impacted. Still, the rumors of the bankruptcy may have been the cause of the collapse of the COB token, though this idea has not been verified.