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Cobinhood – to the moon and back

Cobinhood – to the moon and back

CryptoCurrency Trading Idea

8th February 201912:43 pm

This story started not so way back, in the second quarter of 2017. A younger Taiwanese entrepreneur Popo Chen determined that he didn’t come up with the money for from the sale of a streaming enterprise named 17 Media, and began elevating funds for a brand new cryptocurrency mission. The historical past of 17 Media wasn’t so easy: the public instructed that this “Asia’s largest streaming platform” (which reached solely 5 million customers) was efficiently offered to traders whether or not from Singapore, or Thailand, however publicly, nevertheless, nowhere was reported what revenue traders obtained, the transaction went by a merger, the firm wasn’t displayed on the change.


The key to success in crypto-foreign money world is the possession of the change. Popo Chen determined to create the change, named it unsophisticated Cobinhood — an apparent rip-off to the Robinhood model, already profitable and developed at the moment, one in all the leaders in the section of “small deals” in the United States.


No matter how a lot you had been assured of the reverse and instructed about the wonders of the safety of the blockchain, in actuality, the crypto-foreign money change is (with uncommon exceptions) an unusual centralized group, which prospects deposit their very own funds and change property with one another. You won’t ever know who controls the wallets of those exchanges and who controls the Cobinhood pockets right now. Also, you’ll by no means know the place are nonetheless funds on the inventory change or they’re withdrawn in somebody’s pursuits and finance different cryptocurrency startups.


Anyway, to lay a hand on the funds of shoppers, it was needed to develop at the very least the change. And Cobinhood launched its personal ICO. Oh, these blissful instances when traders simply purchased the concept of a decentralized future. For a month or so, the public placement of COB tokens has allowed to entice nearly $15 million. Colossal cash that might present wonderful know-how, software program interface, and inside liquidity.


The engaging component for traders was the fee-free platform. Yes, the change did not plan to take any fee from transactions! And how to earn, how to return to traders their investments, you ask? Nohow. Return on funding and revenue from the starting weren’t in the program. The staff of founders of Cobinhood had one job: to safe a great revenue and bonuses, to leap on the springboard, catapulting in the top of the crypto-foreign money chapiteau.


Everything occurred precisely as any observer may assume: the change began a month later than promised and the first months labored by a stump deck. Its turnover barely reached a number of hundred thousand {dollars} a day, whereas the market leaders had been getting to the billion-greenback buying and selling quantity. Against required by traders liquid token in the prime ten market Cobinhood masse took on a list little-recognized tasks, which habitually held a collection of “pump dump” (dispersal charges and then a pointy drop with fooling who purchased at the peak), and then disappeared ceaselessly, and forgotten founders, and the management of the change. At the peak, the change had nearly 60 such “investment” objects in the citation lists.


Through the “pump” was handed and the COB token: shortly after the ICO value for this, in General, ineffective coin was dispersed in 20 instances. When the capitalization of the tokens has reached $300 million, there was sobering. Most possible, giant seed traders offered their costlier property already at the development part, thanked the founders of Cobinhood, who offered them with such a profitable “field of miracles” and went back to the actual world with considerably heavier pockets and wallets.


The quotes of the token have since been in a steep decline. During 2018, it fell by 20-40% each month. As a end result, to date, the value is 75% decrease than the placement value in October 2017 and is about 120 instances totally different from the peak ranges at which it was utterly artificially deserted by nimble manipulators.


Naive traders watched the implementation of the mission “road map”, hoping that, if not fee (which, as you keep in mind, the change doesn’t obtain), then at the very least further providers can be ready to present some monetary return on the mission. During funds elevating, the staff made many guarantees: the launch of margin buying and selling, holding a lot of ICOS on the web site, which might permit to obtain bonuses to the COB holders, the integration of cost wallets and change providers.


All this remained guarantees. Margin buying and selling was technically launched a 12 months later than promised and right now operates in a sluggish, nearly take a look at mode. For one and a half years of labor the platform carried out just one placement which, nevertheless, to COB holders did not convey virtually something. There was an enormous lottery (“candy machine”) working by which merchants distributed microscopic quantities of untraceable tokens with a worth of about zero. Casino classics: gilding, tinsel, hype, zero filling.


The staff focus swam in the other way. In the autumn of 2018, Popo Chen lit up with a brand new concept: to construct one other blockchain. In a state of affairs the place there are bitcoin, ether, EOS, and at the very least a dozen totally functioning and dynamically creating applied sciences, the founders of Cobinhood determined that they’ll give you the chance to revolutionize and launch a very new, quick and very fashionable product. And, after all, instantly started to increase funds for it.


Dexon’s fundraising marketing campaign was rumored to increase $30-40 million, of which, in accordance to the founders, $20 million has already been raised from an anchor investor. Like the Cobinhood story, is not it? Why is attracting such large funds to write code that doesn’t require its personal fleet of servers and is aimed toward the voluntary creation of nodes round the world? Such funds may properly kind an information middle comparable to these utilized by worldwide companies.


The second marketing campaign on the “field of miracles” was given harder: traders are legible and extra cautious, so the Dexon fundraising has been happening for the fifth month, and the product promised in early 2019 stays a loud prototype.


And the historical past of Cobinhood is progressively transferring to a part that we will name “17 Media Version 2”: Popo Chen left all senior positions on the inventory change, on his place got here a brand new CEO who has no expertise in cryptocurrency world. We can solely guess how quickly the change can be offered to a strategic investor and start a brand new stage of its improvement — with commissions, black Jack and… In different issues, we’ll see.