Circle Acquires US-based Bitcoin Exchange Poloniex For An Undisclosed Amount
Sean Neville and Jeremy Allaire, co-founders of Circle, have released an announcement on the company’s website detailing the acquisition of Poloniex, one of the biggest cryptocurrency exchange platforms in the United States.
The announcement, made on February 26, 2018, is part of the company’s drive to position itself as a major force in the global blockchain industry. As part of the announcement, the two co-founders expressed their delight at the move, describing it as an extension of the company’s “commitment to a new vision for global finance.”
Leading the Cryptoeconomic Revolution
Over the last few years, Circle has managed to remain at the forefront of the emerging cryptocurrency market. Despite enduring a little bit of a sticky period in the immediate aftermath of the problems associated with the launch of its maiden bitcoin product in 2014, the company has managed to establish itself as a reputable name in the crypto market.
Circle Trade, the investment deck service of the company, handles upwards of $2 billion in cryptocurrency transactions per month. From November 2017 all through January 2018, Circle Trade made more than $60 million in revenue even with the volatile nature of the cryptocurrency market.
With this acquisition of Poloniex, Circle seems to be taking a huge step in cementing its status as one of the clear leaders in the cryptocurrency market. Though details of the deal haven’t yet been announced, an insider source revealed to Fortune that the deal is worth about $400 million.
By virtue of this acquisition, Circle can now count itself as a veritable competition for established crypto exchanges like Coinbase, Kraken, and Bittrex, especially within the US market. With the backing of notable names like Goldman Sachs, Jim Breyer, and Baidu, Circle seems to be on the cusp of building a monumental cryptocurrency giant.
The Road Ahead
Poloniex like many of the major cryptocurrency exchange platforms have suffered from a number of service disruptions. There is a litany of complaints by users of the platform over issues like missing deposits, inability to make withdrawals, and poor customer service. According to the announcement of the acquisition released on the company’s website, the first order of business for the development team at Circle is to upgrade the functionalities of the cryptocurrency exchange platform.
The goal is to improve the overall infrastructure of the exchange platform ensuring that it is able to offer reliable and robust services to its customers.
Circle also wished to expand the utilization and capacity of the exchange platform by scaling up through the use of localization and market expansion. The team at Circle will strive to leverage the already existing financial products on its platform to enhance the functional capabilities of the newly acquired Poloniex cryptocurrency exchange.
Circle also aims to bring a degree of reliability and trustworthiness to a market that is historically beset with regulatory issues. Circle is the first company to be awarded a BitLicense by the state of New York.
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