Two years after the record $400 million takeover, the cryptocurrency news show that the crypto exchange Poloniex may spon out from its parent firm, Circle. Both of the companies announced the news this Friday in a series of blog posts.
In fact, there were two blog posts which confirm that the crypto exchange Poloniex will be transformed to Polo Digital Assets, Ltd. and serve as “an independent international company” backed by an unnamed Asian investment firm. Aside from that, the trading platform won’t serve US customers after this year.
As the joint announcement by the crypto exchange Poloniex and Circle shows, US residents now have until December 15 this year to withdraw their assets and all of the trades are being suspended on November 1st this year, the blog posts read.
Poloniex went further describing the move and said that the company has “a multiyear plan to spend more than $100 [million] to develop and expand” its platform. As major part of its offers, Poloniex will also reduce the trading fees to 0 percent between October 21 and December 31 this year.
The co-founders of Circle, Jeremy Allaire and Sean Neville, wrote their own announcement and said that the company plans to “double down” on its “efforts in building a more open, global and accessible financial system.” It is going to achieve that by growing its stablecoin market and building up SeedInvest – the crowdfunding platform that it previously acquired.
By letting the crypto exchange Poloniex go, Circle will lone itself. As a reminder, Circle acquired Poloniex in February 2018 for $400 million. At the time, Allaire and Neville wrote that they imagined building Poloniex to become a marketplace for “tokens that represent everything of value,” such as physical goods, real estate and even creative productions.
The Friday blog post by the two shows a new decision:
“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.”
The crypto exchange Poloniex will obviously continue operating under a new name and a completely new platform, which is why users need to withdraw all of their assets before November 1, 2019 (its closing).
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