COBINHOOD EXCHANGE MIGHT BE AN ALTERNATIVE TO CHINESE EXCHANGES CLOSING SHOP.

Before i invest in any ICO one of the few things i do, would be to join the slack and critically evaluate the team. After i joined Cobinhood slack, i was greatly impressed by some of the question asked by Raven77, most of which lies on the legitimacy of Cobinhood as a company. The founder of Cobinhood invited Raven77 to come visit Cobinhood office, given that he also lived in Taipei, Taiwan.

Raven77 took up the challenge and did visited Cobinhood office which is located in the same building with that of JP Morgan and Mozilla. Raven77 gave his report findings and confirmed Cobinhood as a legitimate company. His report can be found here: https://medium.com/@Cobinhood/community-perspective-a-look-in-to-what-a-next-generation-cryptocurrency-exchange-looks-like-76d09757560c

Having clarify that, Cobinhood is a cryptocurrency service platform for the blockchain era. It is the first ZERO TRADING FEE CRYPTOCURRENCY EXCHANGE. In other words, one can trade in this exchange without paying a dine in exchange fees. If there is any question that comes to mind would be, how then does this exchange makes revenue, given that top cryptoexchanges such as Bittrex and Poloniex makes about 1 million dollars per day in exchange fee. This question was clearly answered by Cobinhood CEO and founder Popo Chen in some of their video

Also a very good review was made by Hacking the System on Cobinhood which can be found here

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while this is not a financial advise, i will be demonstrating the four reasons why i would be investing in Cobinhood.

1. The team:

The founder of cobinhood, Popo Chen was the Co-founder of 17 Media, one of the largest live stream media in Asia. Such therefore shows an experienced leader who has build and grown a start-up to become mainstream.

1. The Idea:

The idea of a zero-fee exchange is new and we are yet to see how traders will embrace such. At this moment there are skepticism with regard the viability of sustaining such on the long run, however i am of the view that traders will most likely embrace such idea if it will add extra money in their portfolio and if the exchange has great liquidity.

1. ICO incentive:

Given that there are much ICO popping up each day, there is a possibility that some of the future ICO will be run through Cobinhood. Should such be the case, COB holders will be incentivize just by holding Cobinhood. They would get a better deal in terms of price should they want to invest in these future ICO.

1. Chinese Alternative:

There is a possibility that the Chinese traders may welcome cobinhood as a result of the team affiliation to the Asian market. In order words the team has a broader understanding of the Asia market than most western exchanges might. Thus Chinese traders and investors might see this as an alternative exchange.

Drawbacks

Having said all that, cobinhood in my analysis is one of those ICO that could have sold out easily, should the ICO had being a little bit more investor friendly. One of the reservations among potential investors on this ICO is that if the token are not sold out, the remaining tokens will not be burnt but rather will be reserved by the team. The team has not truly given a convincing answer on why these token will not be burnt. It seem that the remaining reserved token will be locked and will only be released in periodically.

The second reservation lies on the claim that the token might not be listed in coinmarketcap due to CMC policy of only listing coins that has a fee track associated with it. This question has been asked in the slack team, however not much answer has been given on how this can be dealt with by the team.

The final reservation lies on the fact that the COB token is already being traded on etherdelta, and the price as at writing is fairly below the ICO price.

Verdict

Despite these drawbacks, i see a potential in Cobinhood and would be investing in it. They currently have a demo version of the exchange which will be live in November. And given that the founder has a track record of successful startup in his belt, it is worth taking the risk.

To join their ICO https://cobinhood.com/

The company whitepaper: https://cobinhood.com/assets/whitepaper/whitepaper_en.pdf

Author's Bitcointalk profile: https://bitcointalk.org/index.php?action=profile;u=979883