UPDATE – 12 July 2021: This exchange isn’t available anymore. The final announcement was made on 10 February 2020.
In our COBINHOOD review, we will be looking at the features, advantages, and disadvantages presented by this exchange.
COBINHOOD Review | Exchange Overview
COBINHOOD is a crypto exchange based in the Cayman Islands, which operates from Taiwan, whose beta version was launched at the end of 2017.
COBINHOOD markets itself as the first zero-fee cryptocurrency exchange in the world. The platform also provides other services, such as an ICO underwriting and margin trading.
The founder of COBINHOOD is Popo Chen, a well-versed entrepreneur with a Degree in Electrical Engineering. The co-founder and CTO is Wei-Ning Huang, who has worked at Google for three years and has over five years of experience in the open-source sector, specialized in developing large-scale web applications.
COBINHOOD’s advisory team consists of Former U.S. Federal Chief Information Officer, Tony Scott and Former Chairman of EasyCard, I-Cheng Liu.
The exchange is registered under the Being Inc. company, with the registered address: The Grand Pavilion Commercial Centre, Oleander Way, 802 West Bay Road, P.O. Box 32052, Grand Cayman KY1-1208 Cayman Islands.
Supported Currencies and Available Countries
COBINHOOD supports more than 90 different cryptocurrencies, with its listing constantly expanding. Bitcoin, Litecoin, Ethereum, and Bitcoin Cash are some of the cryptos they support.
Their trading is divided into five main coin markets: Bitcoin (BTC), Ethereum (ETH), Tether (USDT), US dollar (USD), or COBINHOOD (COB) market.
The USD market is recently introduced, and the fiat currency can only be traded against cryptocurrencies (BTC, ETH, USDT, and COB). Users will have to upgrade their account verification to level 3 in order to trade with fiat (more on that later in our COBINHOOD review).
The platform also lists a variety of smaller coins that are not available on other platforms, but most of them have low liquidity.
According to their website, residents from the US and Japan are not able to use the COBINHOOD trading service.
The COBINHOOD interface can be used in web browser format on all major operating systems, including Windows, Mac, and Linux, as well as on mobile devices that operate on iOS and Android as an app.
User Interface and Experience
The platform has a very sleek and aesthetic interface that displays basic information, such as price charts with changeable time-tables and RSI/MACD indicators, depth chart, trade history, order book, order form, account balance, and past set-up orders.
These features will suffice for novice traders, but advanced traders looking for in-depth charting and doing advanced TA should orient themselves to another platform.
The flyout dashboard is hidden, but once accessed from the top right of your screen, it will list Account, Funds, and the Help Center.
COBINHOOD also developed mobile apps for Android and iOS devices. The apps have all the features available on desktop mode.
How to Get a COBINHOOD Account
STEP 1. Go to the exchange’s homepage and click “Create Account;”
STEP 2. Complete the form, read the terms and conditions, and click that you agree;
STEP 3. Confirm that you are not a robot;
STEP 4. Click “Sign Up;”
STEP 5. Go to your email account and click on “Activate Account;”
STEP 6. You will be redirected to an account confirmation page. An email will be sent to you to announce that you now have a confirmed account;
STEP 7. Start the verification process by going to “Accounts” and “Limits;”
STEP 8. There you will be able to see three verification levels along with their respective daily limits (more on limits later on in our COBINHOOD review):
- Level 1 only requires your email and password;
- Level 2 requires that you also provide your full name, current residence, citizenship, an ID (such as a driver’s license, passport), a selfie with your ID, FATCA, and your phone number;
- Level 3 requires the information from Level 1 and Level 2 plus proof of residence and the source of funds.
STEP 9. Submit the data according to your selected level of verification;
STEP 10. Wait for your verification to be confirmed.
How to Use COBINHOOD Exchange
Our COBINHOOD review includes all the actions that you need in order to access COBINHOOD, either in browser or mobile app format.
- Log in and go to the “Trade” page to see your orders;
- Select one of the “Market,” “Limit,” or “Stop” orders;
- Go to the top left corner and click “Select Product” to view the drop-down menu;
- Choose one of the available markets BTC, COB, ETH, and USDT;
- Select the pair you want to trade;
- Enter the amount of cryptocurrency you want to use in your trade;
- Click on “Buy” or “Sell.”
COBINHOOD Exchange Fees and Payment Methods
There does not charge any fees when making trades on the platform. The exchange applies some fees to deposits and withdrawals. You will be required to pay the standard mining fees which are requested by the network.
COBINHOOD also has a native token called COB, which has similar functions to Binance’s BNB. The COBINHOOD (COB) token can be used to pay for withdrawal fees and receive discounts.
As there are no commission fees, the exchange makes profits from its underwriting service, collecting five percent of the funds made during the ICO.
In our COBINHOOD review, we found out that users can fund their accounts by depositing any of the supported cryptos, and they can also make USD deposits and withdrawals through the ePayService, bank transfer, Payeer, Perfect Money, AdvCash, and FasaPay.
Transaction Times and Limits
Transaction processing times will depend on the network’s confirmation response, which will depend on the selected crypto and its traffic at the time you make the trade.
Daily transfer limits vary depending on the account verification level. No limits are imposed for crypto deposits.
- Level 1 verification has a daily withdrawal limit of 3 BTC.
- Level 2 has a withdrawal limit of 100 BTC per day.
- Level 3 enables fiat-crypto deposits and withdrawals. You are able to deposit and withdrawal up to $15,000 a day at this level. The crypto withdrawal limit is still 100 BTC.
COBINHOOD stores 98% of crypto assets in an offline vault with multi-signature features, which can be opened only through five of the eight geo-distributed hardware security modules. The assets stored in the vault are also insured.
Other security measures include 2FA, SSL encryption, and a new device confirmation system each time you log from a new IP address.
The exchange provides support services through the Zendesk ticketing system, which is available 24/7 and aims to offer responses within a day.
The team can also be contacted through their Telegram channel, and their website also features a comprehensive FAQ section with many answers to all sorts of questions. We did not find any major complaints regarding their customer service while researching for our COBINHOOD review.
COBINHOOD Exchange Reputation
In May 2019, COBINHOOD was accused by the entire community of pulling an exit scam, as the company declared bankruptcy a month later after its associated company, DEXON Foundation completed a $3.5- million ICO.
Dexon’s ICO tokens were initially scheduled to be unlocked on May 20, but the company did not grant access to the coins as originally planned. However, the charts showed that many DXN tokens were dumped, leading to an 85% crash in just a few hours.
Wei-Ning Huang tried to reassure the community by explaining the reason for the sudden drop:
“Taiwan company is being restructured, but everything is working as usual. We unstaked some nodes owned by the foundation to cut the operation cost. We did not dump any foundation owned DXN tokens.”
Another problem that we are gonna expose in our COBINHOOD review is that the exchange’s founder was forced to leave his position because of “emotional instability and personal behavior.”
Then, Chen made a public announcement in which he denied that there was a bankruptcy filing or exit scam, as both DEXON Foundation and COBINHOOD Exchange have been and will still be functional. He also stated that the mother company, Blocktopia Inc will be taking over the exchange’s operations with a smaller team, but its services and functionalities will not be affected by this.
These events have struck a blow to COBINHOOD’s imagine within the community, and many are very reluctant to now have trust again in the exchange.
COBINHOOD Exchange: Pros and Cons
|Pros of COBINHOOD Exchange||Cons of COBINHOOD Exchange|
|No fees;||Lengthy signup and verification process;|
|Supports USD;||Low volumes and liquidity;|
|Supports a wide variety of cryptos;||Involved in exit scam accusations;|
|Sleek interface.||Hidden fees.|
COBINHOOD Review: Verdict
COBINHOOD is an exchange that sounds too good to be true. No fees and a variety of cryptos. But many users have reported getting inflated withdrawal fees and low liquidity on most pairs.
Featured image: bestcoinlist.com