COB Token

COB Token Introduction to the COB Token by Christian Ott
COB TOKEN
24.07.2018
UTILITY, 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 without trading fees for regular (non-margin) trades. 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 I will portray in this article.

COB Token Basics
Let us start with the basics. The COB token has a total supply of 1 billion, of which 367 million COB are currently in circulation.3 According to CoinMarketCap, the market cap of the COB token has been hovering around 10-30 million USD for the past four months, after it went up to an all-time high of 520 million US Dollars on January 10. Being an ERC-20 token, it is based on Ethereum. Since Cobinhood wants to evolve from a centralized to a decentralized exchange4 the COB token will be bridged onto a block lattice via an interchain protocol in the future,5 that is currently developed by the DEXON foundation.6
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Airdrops
As a COB token holder you are eligible to receive two types of airdrops on the platform. 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 whether you have over 10k, over 30k or over 50k COB in your account. The distribution is based on the “first come first serve” principle, meaning you have to be quick to claim your 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 airdrops on Cobinhood are airdrops of their underwritten ICOs.8,9 Cobinhood has already held one successful ICO for Cybermiles, where they raised 84,146 ETH.10 After the ICO from January 5 onwards, Cobinhood token holders were eligible to redeem 1 COB for an amount of CMT tokens, that rose proportional to the amount of COB held by an individual. Per every 500 COB you held on Cobinhood exchange on January 5th, 2018 (at 00:00 UTC+0), you were eligible to receive 23.25 CMT, which equals a percentage of 4.6% CMT per COB. I would estimate, that 10 million CMT were distributed in that airdrop, which would be 1% of CMT’s total supply and was around 4 million US Dollars at the start of the airdrop.11
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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. While regular trades cost 0 fees on Cobinhood exchange, margin trades will cost a fee once the functionality is publicly available. This fee can be reduced by 50%, 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
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Other benefits
Besides airdrops and discounts, holding the COB token offers other benefits. The newest introduced benefit are COB points, that reward token holders for holding COB. With COB points, users will be able to redeem special privileges within the Cobinhood ecosystem. What these benefits are is currently discussed by the team.15 Apart from that, four other benefits exist and are already operational. First of all, 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 quarterly, which reduces COB’s total supply.17 Third, users can only participate in trading contests, if they hold COB.18 Fourth, by holding COB you could participate in votings to list coins on the platform.19 These votings have stopped in January 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.20 Once the required hard cap for listing is reached, the project gets listed within 7 days.21
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Wrap-up
In this article we discussed the benefits provided by the COB token. By holding COB, individuals are eligible for airdrops of listed tokens and underwritten ICOs, although a minimum amount of COB needs to be held to participate in these events. By paying margin trading fees and withdrawal fees with COB, one 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. Other benefits of the COB token include participation in trading contests and listing votings as well as a quarterly burn of withdrawal fees and using COB as a trading pair for underwritten ICOs. The most recent feature introduced are COB points, that will reward holders as part of a loyalty program.

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 – Token metrics
3
“Circulating Supply: 367.697.387 COB; Total Supply: 1.000.000.000 COB”
CoinMarketCap; 23.07.2018
Sources – Dexon
4
“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
5
“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
6
“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
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
“This ICO underwriting with CyberMiles consists of business model consulting, smart contract code review, legal compliance, deployment procedures, and marketing support. These same services will also be employed with all ICOs we will underwrite in the future. With our standard to only underwrite high-quality, promising ICOs that have passed stringent due diligence, smart contract code review, and legal compliance by our dedicated ICO review team, we believe in what CyberMiles is trying to bring to the market and look forward to guiding them, and the many others after them, along the way.”
Cobinhood; Medium; Announcing COBINHOOD’s ICO Underwriting Service; 08.11.2017
9
“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
10
“CyberMiles – Sold Out in 48 hr – 84,146 ETH Raised”
Cobinhood; Official Website; ICO Services; 23.07.2018
11
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.
Christian Ott; concluding from data on CoinMarketCap and the Cobinhood Medium; 23.07.2018
Sources – Discounts
12
“50% off margin trading loan interest can be availed when paid with COB tokens.”
Cobinhood; Medium; COB Token Upgrade: New benefits for you!; 24.04.2018
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
“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
19
“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
20
“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
21
“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