The cryptocurrency ecosystem is inherently volatile with developments, news, and prices changing on a daily and sometimes hourly basis. This volatility is actually attractive to traders and the cryptocurrency space attracts some of the more adventurous traders and investors in the world of finance. While this volatility can work to the benefit of traders, it is generally harmful to businesses as enterprises require stable platforms and economic circumstances to base their operations on. Nowhere is this truer than in the exchange business, over the past few months we have seen established Chinese exchanges shut down due to changes in regulations that saw a ban on all trading and ICO activity in the country.
Earlier this week, Bittrex users have experienced account lockouts with some complaining of sudden account closures while Bitfinex has announced that it is withdrawing completely from the US market and urges its American customers to withdraw their funds by November 9. Whilst ongoing changes in legislation will affect all in the sector there are a number of factors that make Cobinhood more resilient than other exchanges:
- A decentralized exchange – the Cobinhood roadmap outlines the delivery of a decentralized exchange in 2018. Decentralized exchanges do not rely on a third party service to hold customer funds and simply facilitate peer to peer trades directly between users via an automated process. This provides a buffer of protection against any future crackdown on exchanges.
- A global approach- Cobinhood is not limiting itself to a particular geographic market segment and is aiming to position itself as the world’s number one cryptocurrency exchange. As a result, the platform will support a wide range of mainstream fiat currencies including USD, EUR, JPY, KRW, CNY, HKD, CAD, GBP, AUD, and NTD. In addition to this, an international user base will be catered to by a state of the art website/app and customer support system that will operate in 10 major languages, including Arabic, Chinese, English, French, Japanese, Korean, Portuguese, Russian, and Spanish. This will allow Cobinhood to navigate around regulation and participation changes for any of their user base.
- The Cobinhood ICO underwriting service – Cobinhood will perform an in-house ICO underwriting service that will involve the vetting and processing of ICOs via their platform while collecting a percentage of tokens from each project. By underwriting high-quality ICOs that have passed stringent due diligence, smart contract, and legal compliance testing Cobinhood guarantees a revenue stream that benefits all parties involved.
- Enterprise operations- Cobinhood has a number of services tailored to companies such as a high frequency trading server subscription service to attract institutional investors, hedge funds and investment banks that currently do not utilize cryptocurrency exchanges. In addition to this, the ICO spark program will work to help companies integrate their products and services with blockchain technology.
- Financial Centre- a host of additional products and services will be unveiled in the future including a cryptocurrency wallet and payment services as well as crypto assets trading with stocks, forex, commodities, market indexes, and futures.
Cobinhood has taken the decision to operate as a financial centre for the blockchain era and provide a diversified array of services. In addition to this COBINHOOD secured $5 million in seed funding from partners including Banyan Capital and Infinity Venture. By incorporating in the Cayman Islands and operating in Taiwan the Cobinhood team also seek to take advantage of environments that are more receptive to cryptocurrency trading. By taking a multi-faceted approach Cobinhood look set to survive any future rounds of government intervention.
Website : https://cobinhood.com/
Whitepaper : https://cobinhood.com/assets/whitepaper/whitepaper_en.pdf