A lot of things change behind the scenes of the cryptocurrency industry. Poloniex, only recently acquired by Circle, is now being spun off into a new company by the name of Polo Digital Assets, Ltd. It is a surprising turn of events, as it seems the focus of the exchange will shift as well.
Poloniex Spins off
Given how surprised most cryptocurrency enthusiasts were when Circle acquired Poloniex, it was seemingly a matter of time until that situation changed. The platform had a very negative reputation at that point, primarily due to some very odd trading behavior and customer support. Under the management of Circle, Poloniex reclaimed some of its lost glory. The exchange was never able to play any major role of importance in this industry once again, however.
It now appears that the situation will change once again. First of all, Poloniex is spinning out from Circle into a brand new company. It will go by the name of Polo Digital Assets Ltd, and seemingly has gained the backing of an undisclosed investment group. Running a cryptocurrency exchange requires significant amounts of funds, thus having the support of investors is not a bad thing. In fact, it could usher in a new era for this trading platform, as more competition is needed in the cryptocurrency space.
Some key Changes
It remains to be seen how all of these changes will affect Poloniex as a whole. The company claims this spinout is a good thing, as it will allow them to “focus on the need of global crypto traders with new features, assets, and services”. An interesting way of announcing upcoming changes to the platform. Given how there are only a few different trading pairs right now, it is evident that something will have to change sooner or later.
The first “notable” change to come to the platform is the removal of spot trading fees until the end of 2019. This is a very smart decision, as it will make the exchange more competitive. Until now, only the bigger exchanges would offer such fees, although they too need to make money in one way or another. Furthermore, the new company will spend over US$100m on upgrades, expansion, and so forth. Rest assured this will create very high expectations.
Removing US Customers
It was somewhat to be expected, but Poloniex – under the new umbrella – will no longer serve customers in the United States. This process has already begun, as US citizens cannot sign up for an account on the trading platform. Trading will be halted come November 1st. Withdrawals of assets will remain accessible until December 15th. That latter process will be handled by Circle themselves, as a parting gift of sorts.