COSS suddenly suspends all functionality and locks down $2 million of users funds for 3 to 4 weeks
Whenever we are unable to withdraw or perform any operations on an exchange, the exchange is usually implementing a maintenance plan, just like Binance, with regular maintenance announcements. However, for the COSS exchange, things are different. Without an explanation, COSS automatically locks all functionality on the platform for three to four weeks.
What is COSS?
COSS is the abbreviation for Crypto One Stop Solution, launched in 2017 and based in Singapore. It gives retail investors access to more than 50 coins, including native tokens, and provides wallets and platforms for IEO.
They raised $ 3.2 million during the 2017 ICO rush. But, COSS had trouble launching in April 2017, after one development team abandoned it, and the other works unprofessionally. After that, the exchange was operating normally after the upgrade in December 2018.
However, COSS appeared a new error that, in a short time, the customer’s balance for the native token was deleted. The COS token has been changed to a new smart contract as part of the move to the new platform, but the wallet system cannot find which COS tokens interact with the latest smart contract. Luckily, COSS backed up the files, so it was possible to find out who owned what and return the customers’ money on request.
Basically, from its inception until now, COSS has continuously been involved in unnecessary troubles. The consequences are not severe. However, user sentiment for it certainly is not pleasant.
The COSS exchange blocks all functions for no good reason
Usually, if an unexpected platform works abnormally for several weeks, something often goes wrong. In the case of COSS, everything will go according to plan.
Earlier today, the exchange suddenly became useless. Without any prior notice, Singapore-based cryptocurrency exchange COSS announced it had locked out the funds of about 200,000 customers, worth about $ 2 million, for a month.
Announcement of COSS | Source: Satyarth Mishra’s Medium
Then COSS immediately suspended transactions, deposits, and withdrawals. This makes people, especially COSS users, fear that an impending exit-scam is about to happen. Furthermore, COSS’s native token COS has also depreciated in the last two years, from $ 2.99 to $ 0.006 at press time.
However, the company denies the allegations of scam and claims it is doing what is needed to help the platform upgrade the system.
The notice from COSS stated:
“There is no need to panic. Please do not believe in rumors or FUD spread by false messages and groups across any channel.”
Currently, it seems that COSS is a mess. And maybe the team wants to “clean” it by deciding to turn it off in three to four weeks. If informed in advance, they are worried that traders and investors will cashout create an exodus of funds. However, they forget that the upgrade had been in the pipeline for months. This may sound logical, but it does not solve community anger.
Moreover, they will shut down its system three hours before the public announcement. Also, in the report, COSS mentioned how users would be migrated to a whole new platform. While communications can be handled better, there doesn’t seem to be any cause for concern. The most worrying thing is not knowing what the user’s attitude to them will be after this incident.
At the moment, it seems that COSS’s Telegram channel has been hacked. COSS has built a solid reputation since its inception. It may be how many users will transfer their money to another exchange. The activity of freezing for weeks is not acceptable regardless of the reason for doing so. They may have allowed users to withdraw money before turning everything off.
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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