COBINHOOD is a zero fee cryptocurrency exchange launched on December 28, 2017. Registered in the Cayman Islands, it has offices in several major markets to facilitate compliance and is headquartered in Taipei, Taiwan. More than 13,000 users signed up for the exchange on its first trading day.
The company generates revenue via a two-pronged business model. It attaches an interest rate to the loans it provides for margin trading of up to 10x leverage. It also offers an initial coin offering (ICO) underwriting service which its founders compare to Goldman Sachs’ initial public offering (IPO) underwriting business, except with a focus on tokens.
COBINHOOD claims to pick and choose its ICO’s carefully, only underwriting those from reputable, billion-dollar companies. Its service provides marketing resources, liquidity, legal compliance review, smart contract advisory, as well as the reputational bonus of an association with COBINHOOD.
The exchange has a utility ERC20 token, called COB, which aims to maximize traders' profits with benefits tied to the platform. Benefits include 50% off margin trading loan interest and the ability to get future ICO tokens at significantly lower rates.
COBINHOOD’s ICO was officially launched on September 13, 2017, and ended on October 22, 2017, having raised a total of 45,254.9 ETH (equivalent to $13,216,883 at the time). A reported 244,773,856 COB tokens were distributed to 17,433 participants out of the 500 million available. A total of 1 billion COB tokens will be issued.
The platform was co-founded by Popo Chen, a serial entrepreneur who created the successful Asian 17 Live Streaming service, and Wei-Ning Huang, a former Google employee and an active open source contributor. The exchange boasts a seasoned management team and has worked closely with technology veteran and advisor Tony Scott, a former Microsoft executive who served in the Barack Obama administration.
Popo Chen is also the founder of DEXON, a blockchain platform for developing and deploying DApps. DEXON is built on a new kind of ‘blocklattice’ architecture in which every node proposes blocks in parallel, promising infinite scalability.
The decision to create a zero-fee trading platform came from Chen’s personal experience trading cryptocurrencies. He has previously stated that he felt like he was being robbed when he discovered the cut that the exchanges were taking.
COBINHOOD is built on the Google Cloud Platform and is programmed with Golang for high concurrency. The platform is said to be highly secure with most funds stored in a cold vault in which 98% of all assets are kept within security modules. The security modules are multi-signature, meaning each module is locked into different banks’ safe.Read More