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. Remember these people $DXN #Cobinhood $COB https://t.co/xUGJiUQBrr pic.twitter.com/ZUPyP2Bhg7— TSS (@SandorReport) May 20, 2019
DEXON: Yet Another Glorified WhitepaperDEXON promised the world to investors. The team promised ‘high scalability’ and ‘top-notch security’ aimed at solving the problems inherent in other blockchain systems, using every buzzword under the sun. However, it’s now painfully obvious that the project was just hot air — all intended to be a cash cow to salvage some profits before Cobinhood declared bankruptcy. The exchange also held an ICO in 2017 for its own COB cryptocurrency, raising some $13M at the time. The exchange promised zero fees and unparalleled high performance compared to competitors. Holders of COB tokens were supposed to receive dividends from all token offerings held on Cobinhood. It seems as though that money has dried up as well. Large amounts of COB tokens have suspiciously been moved in just the past hours, as seen on Etherscan. It seems likely that DEXON is currently spamming 0 DEXON transactions on its network to hide the massive selloff that the company made earlier today.
Mysterious Cobinhood DeparturesThe exchange is no stranger to controversy. Earlier this month, Cobinhood announced Popo Chen’s departure from his position of co-founder due to ‘personal and investor disputes’ along with his supposed ’emotional instability.’ Chen, however, remained a co-founder for the DEXON project. It’s now looking like his departure was orchestrated in anticipation of the bankruptcy filing. In an attempt to save face, Chen has said that he will continue to make DEXON operational and that this is ‘not the end of business operations.’ DEXON tokens have plummeted in value since the news broke, declining 75 percent at the time of writing. They are rebounding currently, expectedly for another dump. COB is down 35 percent at the time of writing with abysmal volume as well. Did you lose any funds to Cobinhood’s apparent exit scam? Let us know your thoughts in the comments below.
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.