A few weeks ago, the Modern Consensus website published an article saying that a negotiation between Poloniex and Circle had been concluded. Many rushed to describe it as Fake News due to the lack of confirmation from the involved parties and even an apparent denial according to consultations made by journalists. But, it seems that Poloniex exchange has been acquired by Circle Inc. Read on to find out more.
However, in the official press release they suggested the idea that the purchase negotiations had been going on for several months, which suggests that the teams were not surprised and that news of the purchase could potentially be beneficial for all users, since there may be an advanced work between both companies for the development of services based on Circle’s vision.
“We also look forward to scaling Poloniex up and out through market expansion and localization, increasing token listings where possible and appropriate, and exploring the fiat USD, EUR, and GBP connectivity that Circle already brings to its compliant Pay, Trade, and Invest products. More on these efforts to come.”
Circle is a $140 million company backed by venture capital from investors including Goldman Sachs, IDG Capital Partners, Breyer Capital, Accel Partners, General Catalyst Partners, Baidu, CICC Alpha, EverBright, WangXiang, and CreditEase. And with a transaction of approximately $400 million dollars (according to data provided by Fortune magazine about the acquisition), it can be noted that the potential represented by the Poloniex exchange acquisition is taken quite seriously in order to consolidate their vision of building a global market for exchange and payments with Tokens. Poloniex mobilized in the last 24 hours a total of 64,937,380 USD.
The acquisition would not only strengthen Poloniex as an exchange but also put Circle in a competitive market position, posing a direct threat to Coinbase’s presence as a leading company in the sector, and being able to overthrow the ranks occupied by other large companies such as Binance, Bittrex, and Kraken (which had recently shown some operational problems).
According to the press release published on the Poloniex exchange website, users do not have to worry about policy changes. Their activities will remain exactly the same without any kind of interruption or last-minute changes, so the user experience will remain the same until improvements are made by the minds behind Circle. Not only is Circle expected to grow in credibility and profit, but the Poloniex team expects the same to happen with this famous exchange house.
“Looking to the future, we are excited to work with Circle to localize our product in more geographies, to explore options for fiat connectivity across major world currencies, and to continue providing our users with access to innovative token projects that extend cryptocurrency protocols to new use cases.”
So far the opinions in social media have been positive and expectations are quite high.
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