Cobinhood Exchange to Close Down Alongside Dexon (DXN) Coin Crash
The Cobinhood exchange may have participated in an exit scam, while allowing for the dumping of a recently released DXN token.
In another example for the risk of niche exchanges, Cobinhood has facilitated what looks like an exit scam of the Dexon (DXN) ICO. Cobinhood is one of the markets that was willing to add new tokens and coins almost immediately, where all other exchanges waited out the listing.
And while Cobinhood’s site is still open, the operator has passed a demand to close its business, reported Blocktempo. The company is in the process of releasing its employees and negotiating contract terminations.
The news has crashed the price of the Cobinhood (COB) coin, down nearly 50% just in the past day, to $0.003. The asset suffered significantly during the bear market, essentially becoming worthless, and crashing from a peak at $1.42. For most of the past year, COB price has hovered around a penny.
In the meantime, DXN lost more than 60% of its value on Monday, after the unlocked tokens were immediately sold:
The biggest problem was that the efforts of Cobinhood and Dexon seem concerted, especially given that the same team is behind the exchange and the ICO. Cobinhood enabled the Dexon project by boosting its ICO efforts and offering a listing, only to perform what looks like a double exit-scam.
There is no deadline for the closing of Cobinhood yet. The exchange has trading volumes just below $1 million in 24 hours, and carries 24 trading pairs for relatively obscure coins and tokens. Cobinhood once again underlines the fact that niche exchanges are extremely risky. The exchange’s crash arrived just days after Cryptopia, another niche market, closed once again, entering an indefinite liquidation procedure, with the real possibility of never reopening, while controlling significant user funds.
The looming closing of Cobinhood has led to the closing of the ICO/IEO of the Zeux project. Still, anyone who participated in the sale of ZUC tokens would be eligible to receive them in an ERC-20 wallet, while the project looks for another exchange partner.