Why Bitcoin Is Soaring: Goldman-Backed Circle Buys Crypto Exchange Poloniex

in bitcoin •  last year 

Content adapted from this Zerohedge.com article : Source


Circle Internet Financial, a company backed by Goldman Sachs is buying the cryto exchange Poloniex for $400M.

This seems to be the catalyst which lifted bitcoin higher this morning, surpassing the $10,000 mark.

The move seems to provide validation to the cryptocurrency market since one of the largest banks in the world is now a part owner in one of the largest crypto exchanges.

Circle, which allows users to transfer money via text, said in an statement on its website it will "address customer support and scale risk, compliance, and technical operations to bolster the existing product and platform." An excerpt from its statement is below:

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.

Built upon a foundation of blockchain technology and crypto assets, Circle is on a mission to make it possible for everyone, everywhere to create and share value. Circle Pay helps people around the globe connect to one another and share value just as they would share any other kind of content on the open borderless internet; Circle Trade serves institutions and investors as one of the world’s largest providers of crypto asset liquidity; and our forthcoming Circle Invest app enables individuals to tap into crypto asset investment through a simple, seamless, mobile experience.

Now Poloniex addresses another key element of Circle’s product foundation: An open global token marketplace.

We want to take a few moments to welcome Poloniex, present the immediate work you can expect from us with Poloniex right now, and share what we see as its future.

The combine company will now take on the likes of Coinbase.

As Bloomberg adds, "the agreement comes as startups and corporations alike are trying to figure out whether to wade into cryptocurrencies. While many have been involved in blockchain for years, there has been more hesitancy around what to do with digital assets like Bitcoin due to volatility and a history of it being used in shady transactions like drugs and evading taxes."

Non-adapted content found at zerohedge.com: Source


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Smart move on Poloniex's part selling out to GS. If you can't beat them, buy them! Here come the big banksters to the crypto party!

This is big news. Circle used to be best way to buy Bitcoins from 2015 to 2016. They had a popular app on the app store similar to coinbase but they didn't charge any fees. They lost a lot of support when they stopped selling BTC through their Circle Pay app but it's good to see them continuing to support crypto. Hopefully this will bring some more credibility to Polo as they had a pretty bad reputation before Binance and Bittrex became popular. Circle also has an iPhone/Android app in development called Circle Invest, which would be like Robinhood but they intend to support many more alts right away. I think this is big because now that they own the exchange, it's likely they will be able to support a much more broad selection on their upcoming app.

Hopefully this will lead to good things when it comes to the whole market! Since this move was probably responsible for bitcoin price going up a bit immediately, maybe the market will slowly go back up to where it was before the big crash! It's interesting to see how this will turn out for FIAT currencies in the long run if banks are getting more and more interest in cryptocurrencies.

Wauhhh...at least I have now discovered the hidden reality. I was just wondering on how Bitcoin price could rise, after a long period constant price.

Bitcoin is the leading cryptocurrency and it affects most of the remaining coins available in the market. Purchasing these assets at poloniex will make this company earn more profit since we re now living in a crypto era.

Many people are eager to join, in all corners of the world and poloniex will be there to facilitate and fulfill customers expectations. I believe this is the best ever decision that circle internet financial has ever made.

The number of cropto users is growing day by day and people will always be in need of exchanges to perform their daily transactions and I think poloniex will be there to serve them.

@jona12

I am not sure what to think about this.

It is interesting to note how Goldman got into the crypto game. For all the publicity that Dimon got and the back and forth of JPM, Goldman was very non commital through it all. Yet here we see them backdoor their way into cryptocurrency.

They are now an exchange. Goldman, an institution, is in the game just like they are with stocks, forex, bonds, mbs, and whatever else they sell. How will this change things moving forward?

My sense is this will open things up a bit for the larger players. Goldman will push to have them allowed in. That said, my feeling is we need to have more decentralization.

Goldman and the other major banks are already too powerful. I dont think this move is one to control crypto...Goldman simply sees the trading fees.

And yes I do know this is a Circle deal but we know Goldman was heavily involved...in fact I bet that is where most of the $400M came from.

Acquiring one of the leading global cryptocurrency exchanges is a huge step for Circle. This decision has indeed given bitcoin which was dropping at a fast rate some light. Activity on the cryptocurrency market is going to increase, a reason we might not see another dip for sometime.
Circle Pay will be adding on more features on top of allowing users to hold, send, and receive traditional fiat currencies. This is great for Circle.. but above all a massive opportunity for the cryptocurrency market as it will expand wider since clients making exchanges will be increasing. Poloniex has had a few flaws like the hacking that befell it back in 2014, when bitcoins got stolen from investor holdings.. Otherwise generally they have had a long clean record that has kept them in good terms with their clients. Circle, with the reputation it has built will have to start from where Poloniex has stopped to make exchanges much better. I've already had they'll be increasing token listings. Something good for the blockchain as cryptocurrency gets embedded into more professional fields. One thing I do hope is seeing various different ways of converting funds into cryptocurrencies. As there are few systems that play that role and this creates lots of traffic when exchanging. The security also needs to be hickened up to get rid of any chances of a 2014-like hack from happening again.

If bitcoin was able to survive MTGOX then basically nothing will take it down. Every month there are so many new developments that further stretch the reach of bitcoins infrastructure

I think this is good news. The fact that the Goldman boys are willing to drop 400m on crypocurrency makes me think others will be following soon. More cash into the market can't be a bad thing...... hopefully

Circle Internet Financial, a company backed by Goldman Sachs is buying the cryto exchange Poloniex for $400M.

I laugh at these hypocrites while being backed by opposition of crypto and at the same time investing in company that has to do only with crypto. It seems to me they are completely confused abou blockchain technology especially cryptocurency. 0BEDBBEF-9FEA-4F81-B5DB-9379816E401F.gifThat only proves what I believe in. Crypto and blockchain has an enormous future and we should take an advantage of every dip we get.

They got bought out no wonder Poloniex was such a trading pita and killing the legacy accounts.

Bitcoin is going in the wrong direction. Big powerful players and speculators moving in to take over the market is the opposite of bitcoin's original goals.

I started mining bitcoin 6 years ago. Its goals were laudable. But after a while I realized it would not achieve its goals.

Among technologists like myself the latest pitch I hear is that something useful will come out of bitcoin or another coin someday.

But that is all I get. Vague claims.

And the vague claims have gotten way worse over the last few years.

At this point it is very difficult for me to see bitcoin as having accomplished anything other than becoming a great speculative play.

When I and others built the Internet it was about empowering individuals and now the Internet is terribly centralized among a few major players.
thanks for sharing @zer0hedge
Resteem this article

Does this mean Polo will have USD deposit/pairing and international wire services? That would be nice. As for Banksters buying exchanges, go right ahead, behind the ball as usual..we're heading towards decentralized exchanges now.

So let's hope that Circle supports actual coin ownership, not some asset pegged at the price of the coin as Robinhood has done. With this buy, I would expect that Circle would have the capability to provide easy custody of the coins, the wallet, etc, to their user base.

If Circle is committed to providing users with coin ownership, then market cap will increase and that will be good for all coin owners.

We are already over 10k the next stop is 13k then BTC will drop back to 11k

Bitcoin is the most popular topics for debate today.

nice poast. When I and others built the Internet it was about empowering individuals and now the Internet is terribly centralized among a few major players.
thanks for sharing @zer0hedge

Today we completed significant upgrades to our cold storage infrastructure as part of some broader initiatives. We will have more to share on that front soon. All funds are safe.

Added to my follow list. Keep up the good work and what do you think of the current market?

I think this is big news for poloniex users and the crypto in general as circle is a well-run company and they are on the radar for a while now (compared to crypto projects). They will definitely improve the customer support issues at Poloniex and I think they will offer various innovations to their clients.

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The payment platform supported by Goldman Sachs has announced that Circle USA-based cryptographic money market has bought Poloniex. Circle, which has one of the biggest stock markets in the market, intends to dominate the blockchain industry with this move.

So Goldman Sachs, who laced the Obama administration and has made an appearance in the Trump administration, is buying a centralized crypto exchange....and also has been eyeing the decentralized exchange Airswap. This should make it clear that as people have the potential to get wealthy from mass crypto adoption, and mass adoption will become more feasible as financial and tech titans get on board and govts regulate the currencies and exchanges the titans back, making cryptos seem "normal" to the average citizen...that this ultimately could be an exercise in further wealth concentration and control....Just wait until all the big corporate execs are the whale investors in every successful crypto and regulated crypto platform. It won't matter if it's "decentralized" or not, because it's just about people gaming a system to gain power and influence, semi anonymously.

Circle did announce that they were going to provide a Bitcoin trading platform sometime in June. Goldman also announced that they are setting up their trading desk for crypto by June 2018 so this is all planned.The biggest news here is that Poloniex isn't dead, but instead good enough to be bought by Circle (which is backed by a well known bank).I fontly remember the second half of 2017 when everyone and their mother would constantly shit on Polo for being a scam. Lol.The polo trollbox would be going wild right now.

bitcoin The volatility of the currency weakness is too big, advantage is that everyone is bullish about his future. If make investment plans in his trough, maybe there will be a major opportunity.

Great news, especially considering that Goldman Sachs said that cryptocurrencies were a bubble. And now they are buying/investing into this world. A good turning point for BTC price and consequently all of the other coins.

$400M is a considerable amount and we saw immediate reflex on BTC price, a lot of expectation was created around this news.

Take advantage of PayPal's founding partners, PayPal's founder partners. Take advantage of PayPal's founding partners. and those who invested in Facebook for the first time in 2004 stressed that Thiel would buy Bitcoin and raise demand for virtual currency.