Poloniex Acquired By Circle The Goldman Sachs Backed Payment Company

  • Goldman Sachs back payment company, Circle buys cryptocurrency exchange Poloniex
  • Leaked slides from Circle suggest the SEC will not investigate past wrongdoing in Poloniex 
  • The story was broke weeks prior but was denounced as 'Fake News'

The payment and fintech company Circle has acquired Poloniex exchange. Weeks of rumours have finally been put to rest as the press releases were circulated earlier today.

A CryptoGlobe source says that the acquisition price is around the $400 million mark which would place it as the largest acquisition in the crypto space to date. A move that makes Circle one of the most powerful and influential crypto conglomerates.

Circle is looking to strengthen its position in the crypto economy and with the purchase of Poloniex they will gain greater exposure to crypto-assets. With Coinbase bringing in $1 billion in revenue in 2017, VCs are taking a closer look at potential profits of consolidating the cryptocurrency exchanges.

The founders of Circle, Sean Neville and Jeremy Allaire wrote on their website:

“We’re proud to announce that Circle has extended its commitment to a new vision for global finance by acquiring Poloniex, a leading token exchange platform,”

Sean Neville and Jeremy Allaire

A small site called ‘Modern Consensus’ broke the news almost a month earlier, but it was quickly shot down as fake news. @AriDavidPaul supposedly confirmed with his source at Circle that the news was indeed fake. Circle managed to kept their cards close to their chest in the meantime and the news story has now been vindicated.

Crypto Consolidation

The exchange is one of the oldest and most well-regarded within the space but has been struggling to cope with the rising demand over the 2017 rally. With many users complaining of a slow trading engine and an unresponsive support team, the exchange was losing market share to newcomers Binance and Kucoin. Despite slipping down the rankings, the exchange has the 9th largest BTC ETH market and is ranked 14th on overall volume.

Poloniex was once one of the most diverse exchanges that listed a large proportion of crypto-assets; however, with the huge rise in the number of tokens, Poloniex has taken a strict policy on listing new tokens. It is thought that this is for legal reasons as it would expose the exchange to regulatory pressure from the US. Something that Circle says they want to tackle:

“Secondly, we also look forward to scaling Poloniex up and out through market expansion and localization, increasing token listings where possible and appropriate”


Pardon From The SEC

A leaked confidential slide from a Circle presentation suggests they will be regeristing the new entity witht he SEC and FINRA as a Broker / Dealer and obtain an ATS (electronic trading marketplace) license. However, the slide goes on to explain that the SEC indicated they would not pursue any enforcement action for prior activity. This could set a precedent for exchanges wanting to exit the business without having to deal with audits and uncomfortable questions.

The Poloniex team is shrouded with secrecy and no verifiable identities can be linked to the exchange operations. In such a space it is not uncommon, Shapeshift's employees all work under aliases besides the CEO Erik Voorhees. It is hoped that Circle's acquisition will bring greater transparency and rigour to the wild west of finance.

OKEx Adds Dogecoin Margin Trading and Savings Accounts Amid Viral Pump

Popular cryptocurrency exchange OKEx has announced it’s adding Dogecoin (DOGE) margin trading and savings accounts, as well ads a DOGE/USDT-margined perpetual swap trading pair.

According to the cryptocurrency exchange’s announcement, DOGEª/USDT trading pairs will be available for spot margin trading, and tiered margin trading benefits will apply to it. The cryptocurrency, launched in 2013 as a meme, has been going through a viral pump thanks to a TikTok video.

As CryptoGlobe reported, TikTok user James Galante asked other members of the social media platform to invest $25 into Dogecoin, which would give them 10,640 DOGE on Robinhood at the time the video was created. The goal was to help the cryptocurrency’s price reach $1, giving them a return of over 42,000%

Despite being launched as a meme currency with the popular Japanese dog breed Shiba Inu as its mascot, Dogecoin has a dedicated community behind it that, in 2014, raised $25,000 to help the Jamaican bobsleigh team attend the Winter Olympics in Sochi, and later on raised $55,000 to support NASCAR driver Josh Wise, among other things.

Since the viral TikTok video was published the price of DOGE moved from $0.0022 to a high of $0.0047, before dropping back to $0.0037 after the hype surrounding it started dying down. Nevertheless, CryptoCompare data shows DOGE is still up over 44% in the last 30-day period. Its volume went up by 683%.

DOGE.pngSource: CryptoCompare

OKEx’s announcement details Dogecoin has also caught the attention of some of the most influential people in the world, including Tesla and SpaceX CEO, who tweeted about DOGE in April of last year and helped the cryptocurrency’s price soar because of it.

Commenting on the listing Jay Hao, OKEx’s CEO, said that the exchange is pleased to offer its users new trading and savings featured for Dogecoin, and added:

DOGE is a very popular coin with sophisticated marketing and market potential that many traders will enjoy speculating on and we believe that it will bring additional liquidity to the exchange. As with any trading decisions, however, we always encourage traders to trade with caution and carry out their own research.

Featured image via Pixabay.