A well-known exchange that works with up-and-coming coin and token projects, Cobinhood exchange, has made an announcement about auditing its balances and a down period that is a direct consequence of the auditing work as we are reading more about it the latest cryptocurrency news.
Cobinhood is one of the last exchanges that support many cryptocurrencies, made a worrying publication. The exchange announced that is closing for the purpose of an audit, but this information having been made in a period when other exchange firms are closing down is taken as a bad sign.
The exchange company swore to reopen in a couple of days. Nonetheless, the news about the audit came just months after Cobinhood received a scare about an exit scam, as the exchange lost track of its CEO Popo Chen. From then onwards the exchange company remained in business but with a damaged reputation. While Cobinhood survived the exit scam scare, it looks like its problems with liquidity are still present. The exchange said that it would open its wallets for withdrawals, and has made a warning that new deposits will not be counted in the audit and can lead to definite losses. The funds will be available after the 10th of February without any news about the future of the company.
Periods of technical support have also fallen of exchanges like Cryptopia, as well as QuadrigaCX. Until Cobinhood opens of business, the doubt will remain. The sudden closing of an exchange company also makes certain of the cryptocurrencies to go through certain price anomalies. Cobinhood closes in a period when exchange companies of a smaller scale were stroke mercilessly by the new EU regulations. Stricter reporting rules, the need to disqualify some countries, and track the movement of cryptocurrencies, set a new and much heavier weight on crypto service providers.
Even in the case of an exit scam, Cobinhood will in all probability lead toa a relatively small loss. The cryptocurrency market is not giving any signs of panic in relation to the sudden closing of Cobinhood. For now, there are no indications of a hack or other unexpected malicious activity, except for the already known low volumes and a damaged reputation of the exchange company.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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