• The Cryptocurrency exchange has reportedly filed for bankruptcy after successful Dexon ICO.
  • The situation remains unclear as the company's management has not provided details.

The Taiwan-based cryptocurrency exchange Cobinhood has reportedly filed for bankruptcy and appointed a liquidator to deal with staff lay-offs. However, the contradictory information and the lack of response from the management provokes the rumors of an exit scam.

The community was shocked by the news as Cobinhood had completed Dexon (DXN) ICO and raised $3.5 million in April 2019. The company was supposed to release and distribute DXN tokens sold in the ICO on May 20, but the buyers have not received their tokens yet.

The value of DXN collapsed as much as 85% from $0.15 to $0.04 in a matter of hours. while the cost of COB (Cobinhood's native token), also dropped from $0.006 to $0.0026 at press time.

Investors suspect that the exchange performed an exit scam.

"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" a Twitter user writes.

Meanwhile, Wei-Ning Huang, one of the founders of both Cobinhood and Dexon, tried to reassure the community.

"Taiwan company is being restructured, but everything is working as usual. We unstaked some nodes owned by the foundation to cut the operation cost. We did not dump any foundation owned DXN tokens," he wrote in the Dexon Telegram group. 
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Only one resistance barrier ahead of Ethereum price may prevent it from surging to $1,000

Ethereum has experienced a significant rally in the past several weeks thanks to the upcoming Eth2 update. On top of that, Visa has just recently announced the support of USDC payments, which will work on the Ethereum network. 

More Ethereum News

Yearn.Finance price looks unstoppable as network continues growing and bulls target $32,000

YFI is currently trading at $29,500 and only faces one significant resistance at $29,890 before a potential massive breakout. The network's growth indicates that investors are highly interested in the digital asset which is on the verge of a breakout.

More Yearn.Finance News

Ripple Price Prediction: XRP could rise about 60% if the critical support level holds

Ripple's XRP has been losing ground since Tuesday. The third-largest coin with the current market capitalization of $28 billion hit the recent recovery tip at $0.68 and retreated to $0.62 by the time of writing. 

More Ripple News

VISA opens the Ethereum network to more than 60 million merchants as it integrates USDC

Visa looking to issue a USDC Credit Card after adding Circle Internet Financial, the developers of USDC to its Fast Track Program. Visa will not custody any USDC but will be working with Circle to enable customers to send and receive USDC payments.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES




Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast

BTC

ETH

XRP