Poloniex and Circle part ways
- Poloniex will now be called Polo Digital Assets, Ltd.
- Both the parties released blog posts highlighting the future goals of their respective companies.
Poloniex, the well-known crypto exchange, will be spinning out of Circle, its parent firm. Poloniex will now be called Polo Digital Assets, Ltd., an “independent international company” backed by an unnamed Asian investment firm. The exchange will reduce spot trading fees to 0% from October 21 to the end of the year for all Poloniex traders. According to their blog post, they have a “multiyear plan to spend more than $100M to develop and expand Poloniex, and we are very excited to continue working with the amazing global community of Poloniex customers.”
Poloniex also mentioned that they wouldn’t be able to include US customers any more:
“Unfortunately, in order to be competitive in the global market, we will not be able to include US customers in the spin out, so Circle will be winding down operations for US Poloniex customers. Beginning today, US persons will no longer be able to create new accounts on Poloniex. Starting on November 1, 2019, US customers will no longer be able to execute trades on the exchange. When trading ends, US customers will still be able to withdraw their assets through Circle until at least December 15, 2019.”
Circle co-founders Jeremy Allaire and Sean Neville talked about Circle’s future plans following the announcement:
“Circle will double down on our efforts to build a more open, global and accessible financial system. This includes significantly expanding the services we offer that are built around USDC, the market’s fastest-growing fiat stablecoin, and expanding and growing SeedInvest, the largest equity crowdfunding platform in the United States.”
Regarding Poloniex’s departure, Allaire and Neville added:
“It is bittersweet for Circle to see this incredible product and business spin out on its own … We’ve made enormous progress with Poloniex, including massive infrastructure improvements, adding more fiat options with USDC integration, launching best in class native apps for traders, and building global operations capabilities that can deliver excellent customer service.”
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
