Fall of the Taiwanese’s Blockchain Unicorn

Fall of the Taiwanese’s Blockchain Unicorn

It is never easy to establish cryptocurrency exchanges these days.

From the various successful hacks performed on various exchanges – big or small, to the termination of the entire business operation due to the sudden death of the founder (Yes, we are referring to that Q exchange), some may claim that as one of the main reasons retail investors are not entering the market despite many futile attempts. While hopes remain high for the blockchain technology to disrupt the global economy, our only wish moving forward is to have a handful of major (and upcoming) exchanges stepping their game to attract the masses into the cryptocurrency investing space.

Today marks the official closure of the once-promising decentralised cryptocurrency exchange of the East – Cobinhood. Marketed as the “World’s first ZERO Trading Fees cryptocurrency exchange with the vision to maximize traders’ profits”, Cobinhood had raised US$13M via its own ICO with COB token, making them one of the most promising projects of 2017.

[2020/01/10] – COBINHOOD Exchange is shutting down and auditing all accounts’ balances from Jan 10 to Feb 9 in 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.

Official Cobinhood.com Announcement on 10th January 2020

Cobinhood was set to become the first Blockchain unicorn of its home country – Taiwan. Despite gaining early traction within the space post-ICO, the core team somehow thought that it was a good idea to ‘milk on the ICO opportunity further’ by building a new protocol called DEXON in 2018. While they managed to raised over US$20 million in private investments and US$3.5 million US$ in IEOs performed on Cobinhood (3 million US$ raised) and LBank (500K US$ raised), it was not before long that conflicts within the organisation prevailed.

Dubbed as the “Power Struggle” between the Cobinhood’s co-founders over disagreements in the company’s operation and direction. Eventually Tai-yuan Chen, also known as Popo Chen, has “ceased to participate” in the firm due to “personal and investor disputes”, as announced on their official telegram group back in April 2019. As a result, Cobinhood has been losing the edge over what it has initially marketed itself as. The dangerously low level of transaction volumes as reflected via CoinMarketCap.com, coupled with the loss of company vision and the offshoot of DEXON, has caused the ultimate demise of the cryptocurrency exchange.

We have concluded after reviewing the recent years of events happening, that the cryptocurrency space may still be in a series of soap opera that have yet to see its final episode. We remain hopeful that the last of the negative spillovers of 2019 will bring about a great deal of change to the overall development and progress to the market in 2020.

Let us keep our fingers crossed for that.