Circle Drops Poloniex Less Than 2 Years After Acquisition

Crypto exchange Poloniex is saying goodbye to its parent company Circle; the companies revealed October 18. 

As per a couple of blog entries, Poloniex will currently progress toward becoming Polo Digital Assets, Ltd., an “independent international company” sponsored by an undisclosed Asian venture company. The trading platform won’t serve U.S. clients after this year.

U.S. residents have until December 15, 2019, to withdraw, with all exchanges being suspended on November 1, 2019, the blog entry said.

Poloniex stated that the firm has “a multiyear plan to spend more than $100 [million] to develop and expand” its platform. As a major aspect of its offers, it will decrease trading charges to zero percent between October 21 and December 31, 2019.

Circle co-founders Jeremy Allaire and Sean Neville wrote in their very own statement that the company intends to “double down” on its “efforts to build a more open, global and accessible financial system,” by developing its stablecoin market and expanding SeedInvest, the crowdfunding platform it recently obtained.

Circle first procured Poloniex in February last year for $400 million. At the time, Allaire and Neville said that they envisioned developing Poloniex into a marketplace for “tokens which represent everything of value,” including physical merchandise, real estate, and even innovative productions.

In Friday’s blog entry, the two said:

“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.”