COBINHOOD Founder Popo Chen Addresses Recent Media Speculation Regarding ‘Exit Scam’
Popo Chen, the founder of COBINHOOD, recently wrote a letter to the crypto community and especially those interested in the COBINHOOD Exchange. He began his letter by apologizing for not responding to questions in the recent past. He said that it was because he had been handling some legal issues, which meant he could not comment in public.
The issues Were Quite Complex
Chen said that in recent day, he had seen media reports claiming that the company was in the process of orchestrating an exit scam. 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.
Popo wrote that recent incidents in the company were complex and unfortunate. However, the whole team had been working day and night to ensure that operations would continue as usual. They were also working to ensure that the legal rights of their token holders and backers of the project were protected.
Key Points Popo Elaborated
The foundation and the exchange have continued to function as usual. While the company had been through some complex incidents, which caused the exchange to be suspended on May 20, 2019, its parent company Blocktopia, Inc. had created a smaller team to ensure daily operation would continue as usual.
Popo further explained that there had not been a dump of the DXN tokens. 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. This was unfair to those who had invested in the tokens. 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.
On April 26, an institutional investor accused Popo Chen of financial misconduct during a board meeting for Blocktopia, Inc. Since it was based on false information, he agreed to take part in any investigation. However, his access to the company was revoked. This included telegram, his office badge, and email.
This incident later leaked to the masses at the beginning of May when the team put out a statement as to why he was no longer working for the company. On May 10, he met with a co-founder, they agreed to leave the issues to the courts, and he was allowed back into the team.
Due to weeks of dispute, COBINHOOD announced that it had suspended operation on May 20. All employees were subsequently laid off. The parent company then created a small team to oversee the operation of the exchange. Since then, COBINHOOD and the DEXON mainnet have been operating as usual.
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.