Cobinhood crypto exchange shuts down; users prompted to remove funds

Cobinhood crypto exchange shuts down; users prompted to remove funds

Another crypto exchange is closing its doors with little explanation

The world of digital currencies is still on diapers and as it is, many companies that try to make it out there go through some rough periods that change things. This is the case for Cobinhood which hung a shutdown notice on its website, “COBINHOOD Exchange is shutting down and auditing all account balances from Jan 10 to Feb 9, 2020. It will be re-opened on Feb 10, 2020. All COBINHOOD users can then retrieve their funds accordingly. Please DO NOT make any deposits; it may result in permanent loss.”

Following this communication, some questions were left unanswered for instance if the platform will be reopened for trading again or is just to retrieve funds. Before this message was posted on the company’s website, Cobinhood was more than silent for an eight-month period. Some rumors circulated during that time claiming that the company was either in bankruptcy or that ran away with the user’s funds.

Popo Chen, founder of the company, responded to these rumors in a blog post back in May 2019 that even though that was not the case, the firm has had some issues. Just a while after this post, staff was let go; however, the exchange continued to be functional, according to Chen’s words. “The future of the company is not final yet. Shareholders are under positive negotiation and we may reach a final solution aiming before the end of July,” said Chen.

Cobinhood had some golden times at one point, as celebrity and Academy Award winner Jamie Foxx promoted the firm and helped it raise $10 million in funding to get started.

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