Multifaceted cryptoasset services provider Circle has acquired cryptocurrency exchange Poloniex for $400 Million. The merger makes Circle one of the largest and most influential companies in the cryptocurrency industry and a threat to Coinbase's dominance.
Poloniex (poloniex.com), in its current form, is one of the top 20 crypto exchanges by volume, offering 68 different coins for trade.
Circle (circle.com) in its current form, is made up of three parts:
- Circle Trade, an over-the-counter trading desk for large cryptocurrency investors and exchanges, providing liquidity between a handful of cryptocurrencies and fiat currencies. Minimum trade of $250,000; biggest deal to date of $200 million. This is by far the most valuable of Circle’s three parts, reportedly generating $60 million in revenue in the last three months on $2 Billion in managed cryptoassets. Customers include coin mining entities and other exchanges.
- Circle Pay, a peer-to-peer payment service, similar to PayPal, for small fiat cash and cryptocurrency transfers.
- Circle Invest, a still-in-development platform designed for relatively conservative retail crypto investors looking to make small, steady investments in cryptocurrencies.
Like many of the big cryptocurrency exchanges, Poloniex has suffered from growing pains, struggling with user complaints about lost support tickets, locked accounts, missing deposits, and trouble withdrawing funds. On its blog, Circle promised, “First and immediately…to address Poloniex customer support and scale risk, compliance, and technical operations.”
Looking ahead, Circle aims to roll out a vast marketplace infrastructure that can host tokens for everything of value, including real estate, creative works (art, music, literature, journalism), leases and rentals, fundraising and equity, credit, futures, commodities, and physical goods. Circle’s management team, which has been credited with having their pulse on global blockchain innovation, is eyeing a day when prices grow less volatile and the utility of crypto tokens goes undisputed.
By: BGN Editorial Staff