Cobinhood rumored bankruptcy increasingly looks like an exit scam

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.

Tanya Abrosimova Independent Analyst

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.

Author

Tanya Abrosimova

Independent Analyst

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