Crypto exchange Cobinhood has announced today it is supporting fiat trading starting with the U.S. dollar from July 20. The exchange, known for its zero-fee trading, is endorsed by U.S. football player Richard Sherman.
Cobinhood to Start Fiat Trading
Cobinhood has begun a move into crypto to fiat trading, following regulatory approval. Trading pairs will start operating against the U.S. dollar from later this month. They are also working with Epay, an online payment platform, to allow users to make fiat purchases within a user-friendly interface.
Founder and CEO Popo Chen said: “In several instances, the market is not reflecting tremendous progress being made at cryptocurrencies worldwide. Traders know there are opportunities abound for value, so it’s a very synergistic time to debut fiat trading on the Cobinhood platform.”
In a statement, Cobinhood referenced polls that show the majority of those in the crypto markets expect prices to rise in 2019 after a period of consolidation. The eToro U.K. managing director Iqbal Gandham told NewsBTC in a recent interview that this price correction has been a “blessing in disguise.”
“There’s no doubt in my mind that many value investors were waiting on the sidelines until prices rationalized, and so the near term promises to be an exciting time for exchanges that can offer the liquidity fiat options provide,” said Chen.
NewsBTC has previously reported on the amount of money waiting on the sidelines, held up in Tether. Liquidity is also a key issue as institutional investors begin to get into the market following news that Europe’s largest ETF trader is moving into crypto.
Crypto exchanges often earn revenue through trading fees, such as Binance aiming for $1 billion in profit by the end of 2018 and gaining from the increase in the price of their native coin BNB. For Cobinhood, it appears that they make money through supporting ‘reputable’ ICOs. This may involve their new DEXON foundation.
Cobinhood announced the creation of the DEXON foundation last month, which supports the DEXON blockchain, a blockchain lattice designed to support dApps.
ICOs running on this platform will be exclusive to Cobinhood and 5% of funds raised by Cobinhood-backed ICOs will be distributed to holders of COB. As the team hold 400 million COB, raising the price of the token seems to be one of the main focuses for creating revenue.
Cobinhood have also achieved level 3 know-your-customer (KYC) protocols, which are needed to operate in countries that have the strictest regulations, such as the U.S. It has also announced plans to move towards a decentralized exchange even though liquidity provider and decentralized exchange Bancor was hacked recently for $24 million.
Featured image from Shutterstock.
