Cobinhood Plans Series of Delistings due to Low Volumes
Several once hot digital assets will be abandoned by Cobinhood because of low liquidity and decreasing volumes.
Cobinhood, a niche exchange that currently has 125 tokens and coins listed, will be cleaning up its roster in the next few days, the chief reasons being low liquidity and unpredictable trading. Cobinhood follows the lead of other markets that delist underperforming assets.
As the bear mood endured over the past year, once hot projects saw their trading volumes dwindle to a fraction of previous activity. Some of the assets listed are traded on larger, more liquid exchanges, but their volumes on Cobinhood reach only a few hundred dollars per day. The exchange sees trading of around $3 million, mostly for the leading coins, while other assets generate low activity.
One of the tokens to be delisted on December 21 is Basic Attention (BAT), which was recently added to Coinbase and is a relatively widely used token. Augur (REP) will also be removed due to low volumes, but it has also been seen as problematic for its potential to promote gambling.
Other tokens to be delisted include TenX (PAY), Digix DAO (DGD), and some relatively prominent projects such as Golem (GNT), Civic (CVC), Status (SNT), and OmiseGo (OMG). Curiously, EOS is also getting the boot for being relatively inactive. A handful of less known tokens will also be culled, among them Ethos (ETHOS), Naga (NGC), Game.Com (GTC), SophiaTX (SPHTX), and Dragonchain (DRGN).
Even with the delistings, Cobinhood still has many inactive markets, including pairs with virtually unreported volumes. The exchange has often been used by initial coin offerings (ICOs) as their first listing platform. However, the low activity shows that interest in some tokens remains low.
At the same time, some exchanges show exceptionally high volumes for relatively unknown tokens, prompting suggestions that the trading is faked or boosted by bots.
Cobinhood has not given up on trading other more appealing assets, recently rolling out an investment product program.
Trading and owning tokens has lost its appeal in the past months as new digital assets stopped promising high returns and led to steep losses instead. Nevertheless, may still hold out hopes for a rebound in Bitcoin (BTC) prices.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.