Circle, a cryptocurrency-focused financial firm is going to announce that it is buying the famous cryptocurrency exchange Poloniex. In this way, Circle will become one of the largest firms in the industry.
Circle Buys Poloniex
Poloniex is one of the first cryptocurrency exchanges in listing Ether, the cryptocurrency used in the Ethereum’s platform. As Poloniex started to grow, it needed to find a way in order to translate the fees from the exchange into fiat money. So as to acquire some fiat currency, Poloniex recurred to Circle’s trading desk.
Circle, operates Circle Trade, one of the world’s biggest “over counter” crypto trading desks. Circle acts as an intermediary between whales and shoppers, making money with the volatility of the market. “When things start to get really out of whack really fast, that tends to be good for us,” commented Dan, a trader from the company.
During the last cryptocurrency bull run, some of the most important cryptocurrency exchanges faced difficulties. Indeed, they were not able to support the influx of customers. Poloniex was among the crypto exchanges facing troubles. According to Fortune, by buying Poloniex, Circle will “first and immediately… address Poloniex customer support and scale risk, compliance, and technical operations.”
After several questions to Circle’s executives, they confirmed that Poloniex’s leadership wanted to remain in secret and out of the spotlight. One of the main reasons is due to the nature of cryptocurrencies and the unregulated market.
Poloniex has an important market in Asia, where the token-to-token business model fits with Chinese regulations. Furthermore, Circle Pay it is planning to grow up to 100 employees in Asia Pacific. At the moment, Circle Pay is gaining steam in Europe where Venmo, its rival, has no operations.
Wall Street’s Investments in Cryptocurrencies
Cryptocurrency investors are still waiting for Wall Street entrance in the crypto market. In China the situation is different. The people, enterprises and the government itself are prepared for an entirely new world, according to Jack Liu, Circle Trade’s Asia Chief.
“Incorporating these assets into your wider portfolio is going to become the standard sooner rather than later,” says Rachel Mayer, head of Circle Invest. For her, millennials will be the main market for Circle Invest, while other sophisticated investors will prefer Circle Poloniex.
Apparently, Circle Poloniex will be rebranded to Circle X in the future. But at the moment there is no certain date about it.
Circle Buying Poloniex may end in a new important cryptocurrency firm that will have control over an important part of the market. Cryptocurrencies have yet an important way to go and Circle knows it.
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Image Courtesy of CoinSpeaker
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