• 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 & Analysis

Editors’ Picks

Bitcoin may surpass $9,000 as early as this weekend

Bitcoin bulls hit a brick wall on the approach to $9,000. The first digital coin settled at $8,960 after several unsuccessful attempts to pass this barrier.  At the time of writing, BTC/USD is up 2.5% since the beginning of the day.

More Bitcoin News

Bitcoin closes in on $9,000, IOTA and Ethereum Classic bulls unstoppable

Sounds of happiness and cheer fill the cryptocurrency space on Friday following an impressive turnaround from the drab start during the Asian session, to incredible upward movement in the European session. 

More Cryptocurrencies News

DASH has low chance to be classified as a security

DASH, now the 13th largest digital asset with the current market value of $1.15 billion, topped at $144.75 on January 15 and retreated to $124.00 by the time of writing.

More Dash News

Ethereum Price Analysis: ETH/USD bulls in tactical retreat after a failure at $170.00

Ethereum, the second-largest digital asset with the current market value of $18 billion, has been gaining ground after a short-lived retreat on Thursday. The coin has gained over 3% on a day-to-day basis and 2.8% since the beginning of Friday. 

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bulls piggy-back on altcoins rally

This week was marked by a strong altcoins rally on the cryptocurrency markets. Bitcoin SV (BSV) and Dash experienced the sharpest price increase over 100% in recent seven days...

Read the weekly forecast

BTC

ETH

XRP