Crypto Unicorn Circle Ditches Poloniex Exchange Less Than Two Years After Acquisition

News
Fri, 10/18/2019 - 16:35
Alex Dovbnya
US residents will not be able to trade on the Poloniex exchange anymore
Cover image via U.Today

In a "bittersweet" Medium blog post, Poloniex has informed its followers that it is spinning out of its parent company Circle. From now on, the exchange will operate as an independent company called Polo Digital Assets that will be backed by an unnamed Asian investment group. 

Because of this move, Poloniex will be able to focus on its international expansion, which couldn't be achieved under the Circle leadership.  

This spin-out will finally give Poloniex the freedom and capital to compete in the international market, and the leadership team of Poloniex will be equipped to scale and grow beyond the scope of what Circle can provide.

This is bad news for the exchange's remaining US customers who won't be barred from trading on the exchange starting from Nov. 1. They are allowed to withdraw their funds until Dec. 15. 
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Circle purchased Poloniex for a cool $400 mln back in February 2018, which was the first eight-figure buyout of a crypto exchange.   

The spinout came after the crypto unicorn made an announcement about moving Poloniex to Bermuda due to the anti-crypto sentiment in the US. 

Anthony Pompliano of Morgan Creek Digital predicts that more companies will start leaving the US if there is no regulatory progress.   

Circle CEO Jeremy Allaire has called for more regulatory clarity on multiple occasions, singling it out as one of the main impediments to the industry's growth.     

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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