COB Token

COB Token Introduction to the COB Token by Christian Ott
COB TOKEN
11.04.2019
UTILITIES, FEATURES, BENEFITS
CHRISTIAN OTT
AUTHOR
Introduction
In September and October 2017 Taiwan-based company Cobinhood held an ICO to crowdfund their exchange.1,2 Alongside many features such as margin trading, fiat deposits and withdrawals as well as advanced security measures, their unique selling proposition was to build an exchange with zero trading fees. Investors in the ICO received the COB token in exchange for their investment, which has been one of the most traded assets on their platform ever since. As an exchange token, COB has several utilities, which will be outlined in this article.

COB Token Basics & Distribution
Let us start with the basics. The COB token is an ERC-20 token and therefore based on Ethereum. Since Cobinhood wants to evolve from a centralized to a decentralized exchange3 the COB token will be bridged onto a block lattice via an interchain protocol in the future,4 that is developed by the DEXON foundation.5 The COB token has a total supply of 1 billion, of which 406 million COB are currently in circulation. 342 million COB were distributed in 2017, while another 48 million COB were introduced to the circulating supply in 2018.6
DISTRIBUTIONCOB TOKEN500 M400 M300 M200 M100 M0201820192017342m390m+14%
Airdrops
Looking at COB’s utilities, COB token holders have been eligible to receive two types of airdrops since the inception of Cobinhood. The first option available is called ‘Airdrop-Lite’. Some tokens that get listed on Cobinhood exchange agree to airdrop a percentage of their supply to COB token holders. The amount of airdropped tokens depends on the amount of COB tokens held in a user’s account. The distribution is based on the “first come first serve” principle, meaning users have to be quick to claim their airdropped tokens, since there are only limited spots available. Cobinhood exchange already airdropped 11 different tokens to COB token holders (Lympo, LALA World, Dent, SyncFab, Playcoin, FuzeX, Achain, Hoqu, Universa, Bitcomo, Luna).7 The US Dollar equivalent of the amount distributed varied, but has once even been up to 100 US Dollars per token holder that claimed the airdrop.

The second type of airdrop on Cobinhood are airdrops of their underwritten ICOs.8 Cobinhood has already held multiple successful ICOs, such as the ones for Cybermiles, SimplyBrand or DEXON. Cybermiles already had their airdrop in January 2018, while SimplyBrand and DEXON are still going to airdrop a certain percentage of their tokens to COB token holders. I would estimate, that 10 million CMT were distributed in the Cybermiles’ airdrop, which would be 1% of CMT’s total supply and was around 4 million USD at the start of the airdrop.9 SimplyBrand allocated 3.75 million SBA for COB token holders, which currently have a value of around 128k USD.10 DEXON allocated 32.5 million DXN for an airdrop, which would be worth around 6.5 million USD currently (calculating with DEXON’s public sale price). However, if that is fully distributed to COB token holders or only partly remains to be seen.11
AIRDROPSCOB TOKENAIRDROP LITEICO AIRDROP
Discounts
By holding COB tokens on Cobinhood exchange token holders can also enjoy features of the platform for a discounted price. The most prominent feature in this regard is margin trading. Traders can save up to 50% of the margin trading loan interest fee, if it is paid with COB tokens.12 The same applies to fees paid for withdrawals. If they are paid with COB, they are reduced by 50%.13 Concerning ICOs underwritten by Cobinhood exchange, there is also a discount available, since COB token holders can acquire the issued tokens for a lower price.14
DISCOUNTSCOB TOKENAPPROVEDICOSMARGINTRADINGWITHDRAWFEE
Other benefits
Besides airdrops and discounts, holding the COB token offers other benefits. First and foremost, COB token holders receive COB points, that reward token holders for holding COB. These COB points have various use cases, such as enabling users to purchase tokens in selected ICOs at a discount or allowing users to redeem COB points in selected airdrops. They can also be used in smaller tasks, such as three daily spins in Cobinhood’s candy machine (in exchange for 1 COB point).15

Apart from COB points, four other benefits exist on Cobinhood for COB token holders: First, the COB token serves as a trading pair for Cobinhood’s underwritten ICOs, thus increasing COB’s liquidity.16 Second, withdrawal fees paid with COB tokens are burned once 1 million COB in fees are collected, which reduces COB’s total supply.17,18 Third, users can only participate in trading contests, if they hold COB.19 Fourth, by holding COB users could participate in votings to list coins on the platform in the past.20 However, these votings have stopped in January 2018 and have been replaced by “instant listing”, which is a feature that allows individuals to vote with COB tokens for the listing of an ERC-20 token.21 Once the required hard cap for listing is reached, the project gets listed within 7 days.22
FEATURES+COB TOKENCOBPOINTSTRADINGPAIRFEEBURN
Wrap-up
This article outlined the utilities and benefits provided by the COB token. By holding COB, individuals are eligible to receive airdrops of selected listed tokens and underwritten ICOs. By paying margin trading fees and withdrawal fees with COB, users can receive a 50% discount on these fees. COB also enables token holders to acquire tokens issued in ICOs underwritten by Cobinhood for a reduced price. COB Points are given to users for holding COB and can be used for a variety of features. Other benefits of the COB token include higher liquidity due to multiple trading pairs, enabling users to participate in trading contests as well as a decreasing supply by burning withdrawal fees paid with COB.

Sources – Cobinhood ICO
1
“Token Distribution Campaign of COBINHOOD starts on 13th of September, 2017 at 0:00 UTC+0. It will end in 40 days or when the maximum cap is reached.”
Cobinhood; Medium; How to Join the COBINHOOD ICO; 13.09.2017
2
“We did it! The COBINHOOD ICO has concluded successfully. … 17,433 contributors joined the ICO; 244,773,856 COB tokens distributed; And we received a total of 45,254.9 ETH; This amount is equivalent to a whopping US$13,216,883!”
Cobinhood; Medium; Dev update #1 — Post-ICO progress; 01.11.2017
Sources – Basics
3
“Was the big announcement that one day, you will be a DEX? The planning for the DEX has been in play since COBINHOOD’s ICO stage, and the big announcement is that the DEX will be built on the DEXON consensus.”
Cobinhood; Medium; DEXON x COBINHOOD Community FAQ; 06.06.2018
4
“Will COB be switched to DEXON? … No, COB will be bridged onto DEXON via an interchain protocol.”
Cobinhood; Medium; DEXON x COBINHOOD Community FAQ; 06.06.2018
5
“DEXON is a blocklattice platform built on the DEXON consensus algorithm that achieves infinitely scalable, permissionless distributed ledger technology.”
Cobinhood; Medium; DEXON x COBINHOOD Community FAQ; 06.06.2018
6
Distribution details are from CoinMarketCap’s historical data about the COB token.
concluding from data on CoinMarketCap and Etherscan; 11.04.2018
Sources – Airdrops
7
11 tokens are listed as Airdrop-Lite missions: (Lympo, LALA World, Dent, SyncFab, Playcoin, FuzeX, Achain, Hoqu, Universa, Bitcomo, Luna)
Cobinhood; Official Website; Airdrop Center; 23.07.2018
8
“If you have COB tokens (obtained during or after the COBINHOOD ICO) you can get the CyberMiles ICO token, called CMT, (and other ICO tokens that we underwrite in the future) at a significantly lower rate. Moreover, ICO tokens underwritten by us can be traded on the COBINHOOD exchange platform, immediately, after the ICO, which solves ICO tokens’ low liquidity issues.”
Cobinhood; Medium; Announcing COBINHOOD’s ICO Underwriting Service; 08.11.2017
9
January 05 was the latest date, where you had to deposit COB tokens to Cobinhood exchange to be included in the snapshot for the CMT airdrop. According to CoinMarketCap, the circulating supply of Cobinhood was 344 million on January 05, 2018. According to the COB/CMT calculator, 344 million COB would have given you 16 million CMT tokens. Since every investor couldn’t redeem his/her first 500 COB for CMT and not every investor will have deposited their COB tokens to Cobinhood exchange or will have redeemed 1 COB for CMT tokens and US residents couldn’t participate in the airdrop, I think the amount is way lower than 16 million CMT tokens. Let’s assume that 10 million CMT were exchanged as bonus for COB token holders (although I think this number is still too high). This would be 1% of CMT’s total supply.
concluding from data on CoinMarketCap and the Cobinhood Medium; 11.04.2019
10
“REWARD POOL: An estimated pool of 3.75 million SBA (Allocation: 10% for COB-holders in COBX, 90% redeemable with COB Points)”
Cobinhood; Medium; COBINHOOD lists simplyBrand (SBA) on March 31st; 11.04.2019
11
The pie chart shows that of the allocated 650 million DEXON for the DEXON foundation are reserved for an airdrop (equaling 32.5 million DXN).
DEXON; Official Website; Whitepaper 2.1; 11.04.2019
Sources – Discounts
12
“COB token holders have added benefits. Traders can have 50% off Margin Funding fee when paying with COB tokens. Additionally, the interest fees of Margin Trading don’t have a fixed interest rate. Interest incurred is based on the prevailing market rate.”
Cobinhood; Medium; Margin Trading available now on COBINHOOD; 18.10.2018
13
“Starting now, COBINHOOD Exchange account holders can use COB tokens to pay for withdrawal fees. Using COB tokens to pay for withdraw fees will give users 50% discount when withdrawing (e.g. if original fee is 0.007 eth= 0.00056 BTC=5.38 USDT=59 COB, then the discounted withdraw fee using COB is 29.5 COB).”
Cobinhood; Medium; COB Token Upgrade: New benefits for you!; 24.04.2018
14
“COB token holders will be able to get future ICO tokens COBINHOOD underwrites at significantly lower rates.”
Cobinhood; Medium; COB Token Upgrade: New benefits for you!; 24.04.2018
Sources – Other benefits
15
“COB Points is a loyalty program exclusive for COB supporters. It can be used to redeem special privileges in the Cobinhood ecosystem. In short: The more COB you own and the longer you continue to hold it, the more COB points you earn and the more privileges you’ll receive.”
Jazz; YouTube; Why you need to buy more & HODL COB! COB Points; 20.07.2018
16
“Pairings for the COB token are added after underwritings (Hence why CMT is the only one there at the moment).”
DeAndre TheRapture; Telegram; Cobinhood main channel; 07.06.2018
17
“In relation to using COB as withdraw fees, the COB tokens that COBINHOOD will receive from users’ withdraw transactions will not be returned to the circulating supply, instead, these COB tokens used as withdraw fees will be burned, quarterly.”
Cobinhood; Medium; COB Token Upgrade: New benefits for you!; 24.04.2018
18
“It has been explained few times so far. Burn of used cob as fees wouldn’t be significant to influence price, so rule of burning has been tweaked to perform a burn once 1m cob is reached.”
Fragmaster; Telegram; Cobinhood main channel; 13.12.2018
19
“While this is already a requirement for some trading contests we have launched, moving forward, every kind of trading contest we will launch will require participants to have some COB holdings in their account, or they will not be able to participate in this big-reward trading contests. Each trading mission might have different contest criteria (net deposit volume, net trading volume, etc.), but having COB tokens on your COBX account will remain a constant factor in consideration for who will win these contests. The current “COB Factor” system will also be tweaked to make the COB token more beneficial for participants who join these trading contests.”
Cobinhood; Medium; COB Token Upgrade: New benefits for you!; 24.04.2018
20
“From the 25th (00:00 UTC+0) to the 27th December 23:59 (UTC+0), we allowed users to vote for their favorite tokens so it can be listed on the COBINHOOD Exchange platform for free in an event called COBINHOOD Express (short-period voting).”
Cobinhood; Medium; New Tokens on COBINHOOD: January 2018; 02.01.2018
21
“So instant listing allows users to nominate any erc20 token to be listed on COBINHOOD. After nominations. There will be a vote period which will use 1 COB to cast 1 vote. It’s instant listing because it is 7 days guaranteed listing once all criteria is met by the winning token.”
Jazz; Telegram; Cobinhood main channel; 17.06.2018
22
“We don’t have votings of that manner anymore, stopped in January. The new version is called “Instant listing” in which a token may apply for consideration and/or be nominated by the community, then voted for (votes are paid in COB – meet the hard cap and you’re listed in 7 days). Cobinhood. Currently in Beta phase.”
DeAndre TheRapture; Telegram; Cobinhood main channel; 09.07.2018