Taiwanese cryptocurrency exchange Cobinhood has reportedly gone under, succumbing to the issues that plagued a number of companies during the prolonged crypto winter. The company already gave the boot to its co-founder, arguing that he was emotionally unstable, and the exchange has allegedly become unstable, as well. At least, that’s one side of the story. The other side is that everything is fine and the exchange will continue to remain operational. In either case, it might be a good time to protect one’s assets.
Some reports are saying that Cobinhood has filed for bankruptcy and has appointed a liquidator to handle its assets and layoffs. The news, if true, comes at a perplexing time, as the company just wrapped up an initial coin offering (ICO) that attracted $3.5 million. This has led some to begin to assume an exit scam is underway.
On the other hand, there are separate reports that indicate everything is running smoothly at the company. Its parent company, however, could be in dire financial difficulty. Cobbingham Digital Finance, according to those reports, is shutting down, but Cobinhood will still remain operational.
Unfortunately, no one at either of the two entities is coming forward to issue a statement, which is only exacerbating the situation and fueling frustrations. One Twitter user, “TSS,” posted, “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.”
Making matters worse, the token Cobinhood was expected to release, Dexon (DXN), is not out yet. Cobinhood had said that the tokens would be unlocked and distributed on May 20, but—three days later—there is still no movement. The only comment on the matter came from Cobinhood’s co-founder, Wei-Ning Huang, who said the platform needed more time to reorganize. He didn’t specify whether that was a management reorganization or a money reorganization to offshore bank accounts squirreled away somewhere.
DXN has continued to lose its value over the past week. It started on May 16 at around $0.15 before plummeting to $0.015 on May 20. Today, it is at around $0.13, according to CoinMarketCap, and it might be time to consider cutting losses before losing it all.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.