Cobinhood offers zero trading fees, making it attractive for frequent crypto traders. But with slow support, no fiat deposits without KYC, and a risky history, it's not for everyone. Learn who should use it - and who should avoid it in 2025.
Cobinhood review: What happened to this crypto exchange and why it vanished
Cobinhood, a crypto exchange launched in 2017 with a promise of zero trading fees and advanced tools. Also known as Cobinhood Exchange, it quickly gained attention for its sleek interface and aggressive marketing—but vanished by 2020 amid fraud claims, frozen funds, and regulatory crackdowns. This wasn’t just another failed startup. Cobinhood’s collapse exposed how hype, poor governance, and lack of transparency can destroy even the most promising crypto platforms.
Cobinhood’s downfall wasn’t sudden. It started with red flags: no clear audit reports, unverified team members, and sudden changes to its tokenomics. The platform’s native token, COB, the utility token meant to power trading discounts and staking rewards on Cobinhood, lost 95% of its value within months. Users couldn’t withdraw funds. Customer support disappeared. Then came the SEC investigation into unregistered securities, followed by a complete shutdown. What made Cobinhood different from other failed exchanges? It promised to be the future of crypto trading—and then proved it couldn’t even deliver basic security.
Related entities like crypto exchange shutdowns, the pattern of platforms collapsing after raising funds but failing to deliver real service, and fraudulent crypto platforms, projects that use flashy websites and influencer promotions to lure users before vanishing show up again and again. CoinCasso, Paycml, and OPNX followed the same script: big promises, no real users, no regulatory compliance, and a quick exit. Cobinhood was just the first high-profile case that made traders wake up.
If you’re looking at a new exchange today, ask yourself: Is there real trading volume? Are the team members verifiable? Is there a public audit? Cobinhood had none of that—and it cost users millions. The lesson isn’t just about one failed exchange. It’s about how to spot the next one before it’s too late. Below, you’ll find real reviews of other platforms that actually worked—or didn’t—and what to watch for when your money’s on the line.