The company has released a statement on their official twitter handle saying:
“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.”
Also the site’s homepage has the same message pinned as an announcement.
The exchange which markets itself as, “A blockchain financial hub. The first ZERO trading fee cryptocurrency exchange platform + ICO underwriter.”, has had a long history of questionable practices.
The news of the exchange shutting down its services comes as a surprise for its users while many have suspected it for a while. Last year Cobinhood was rumored to be bankrupt after news broke out that, after the company’s sale of Dexon (DXN) ICO which raised $3.5 million back in April last year, the company failed to release the DXN tokens. The rumors led to the collapse of DXN Tokens from $0.15 to $0.04 in a couple of hours. Simultaneously, the absence of any news from the company itself led to a similar drop in the prices of Cobinhood’s own COB Token, which dropped from $0.006 to $0.0026. Later, Cobinhood filed for bankruptcy in May 2019.
The crypto-community called it a classic exit-scam exchanges have been known to do. The exchange is registered in the Cayman Islands but based in Taiwan. There has been no explanation from the authorities about the reasons whatsoever. The full message from Cobinhood reads:
Dear valued COBINHOOD user,
Thank you for your continuous support for COBINHOOD Exchange during the past few years.
It is with the utmost regret that we make the difficult decision to shut down the COBINHOOD Exchange. We deeply apologize for any inconvenience caused.
COBINHOOD Exchange is auditing all accounts’ balances and migrating all data 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.
Our refund team will send you an email regarding the refund process on Feb 10, 2020.
Meanwhile, please DO NOT make any deposits; it may result in permanent loss.
If you have any questions regarding the refund, please contact:firstname.lastname@example.org
COBINHOOD Exchange Team
We urge our readers to make no attempt to deposit any coins on the exchange and wait for further news. We will of course keep monitoring the issue and keep you updated.