Poloniex, a US-based crypto currency exchange, leaves Circle to create a new stock market that will not support trading for US customers.
Poloniex, a US-based crypto currency exchange, leaves Circle to create a new stock market that will not support trading in US customers.
Asian investment group supported the new firm
Poloniex, a new independent company called Polo Digital Assets, has been announced in an official announcement that it will leave its parent company, Circle. According to Poloniex, this will help to focus on the needs of global crypto currency investors with new features, assets and services to increase the competitiveness in the market.
In a separate blog post, Circle said Polo received support from an unknown Asian investment group.
As part of the move, the firm plans to spend $ 100 million over the next few years and will reduce all spot transaction fees to 0% from October 21 to the end of 2019.
Leaving US market
The company will have to sacrifice the US market in order to compete globally. According to the announcement, Polo Digital Assets will not be used by US customers, and Circle will begin to stop transactions for US-based Poloniex customers.
Starting on November 1, 2019, US customers will no longer be able to trade on the stock exchange. When transactions are completed, US users will be able to withdraw their assets through Circle until December 15, 2019.
Circle stopped many projects in September
Circle bought Poloniex for $ 400 million in February 2018. In late September, Circle announced its decision to suspend Circle Research, a weekly crypto-money market research product, after the termination of the payment application Circle Pay on 30 September. The firm claimed that it wanted to develop financial products such as new wallet services and to facilitate the adoption of digital currencies through Poloniex.
According to TheBlock, some information leaked from Circle about the Asian investor group, including Tron’s founder Justin Sun. Sources say it was reported that Justin Sun was the leader of the investor group.