In Big Grab, Payments Player Circle Buys Poloniex Cryptocurrency Exchange
Circle, which is notably backed by Goldman Sachs investors, just announced it had acquired Poloniex — approximately the 14th largest cryptocurrency exchange by market cap. It’s one of the largest acquisitions in the cryptoeconomy to date, with reports pegging Poloniex’s price at $400 million USD.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
The First of Many Crypto Acquisitions?
From the start of February 2018, rumors of the multi-million dollar deal between Circle and Poloniex were floating around the crypto space. On February 2nd, 2018, a blog on Modern Consensus hinted that Boston-based Circle planned to purchase Poloniex.
Now, the decision has been formalized. Founders of Circle, Sean Neville and Jeremy Allaire, wrote in a new company blog post:
“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.”
Circle itself is a multi-currency money app that facilitates peer-to-peer payment transactions. The company has strong financial support with investors like Group Inc., Baidu, and Goldman Sachs.
As reported by Fortune, the acquisition was signed at around $400 million.
Akin to Circle, the Poloniex team issued a press release on its website stating:
“We are excited to announce that as of today, February 26, Poloniex will be joining the Circle team and building on our foundations to further scale our platform, grow our global reach, and accelerate the token ecosystem in the months and years ahead.”
A Mutualistic Deal
Circle’s acquisition of Poloniex will change one thing that Poloniex is known to be poor at — customer experience. On the contrary that’s Circle’s upper hand, where they have been known to provide seamless customer experience.
The Poloniex press release explains that trading on the platform will not be interrupted throughout the transition. The press release states, “Any updates we make in the course of this transition will be behind-the-scenes and focused on strengthening user experience, platform performance, and security. Your funds will remain safe and access to account functionality uninterrupted throughout.”
Poloniex, now under Circle’s umbrella, will aim to be a leading competitor to crypto giants Coinbase, Bittrex and Kraken.
For the future, the Goldman Sachs-backed payments company Circle has ambitions to allow its customers to make purchases of cars, goods, real estate properties and many other things using its platform.
Will the acquisition mark the new era of crypto space? Let us know your thoughts in the comments section.
Images via TapSmart, Digiconomist