Circle Buys Poloniex For 400M
Todays big news is that Circle acquires Poloniex in a 400 Million deal. The market reacted favourably to the news as Bitcoin is up over 8% and all top 15 coins are up for the day. Everyone who have used the Poloniex exchange knows about their scalability issues and the customer support delays, they are well aware of these issues
We recognize that our extraordinary growth these past few years has not come without some growing pains for our users. We look forward to bringing Circle's experience to increase the scalability and reliability of our platform and operations.
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.
To be honest I gave up on Poloniex a while ago when they made some absurd changes on their user terms, but now I might reconsider my decision depending on the changes that will be made. Overall competition is a very good thing for the average user - I expect lower fees, bigger margin and smaller SMI.
What do you think about this move by circle ? Are 400M too much for polo ?
No doubt that this is a shot in the arm for the entire crypto space. What with Goldman Sacks behind Circle, this is something to be taken very seriously. And it's a payment company to boot! We may be in for a real transformation of Poloniex into a 1st tier power player.
I am more than sure that this will completely transform Poloniex. I am a bit interested/worried what they will come up with in the next 1-2 years. Goldman are always one step in front of the other. In my opinion these guys are the most influencive bank.
The smart money always adapts and goes with the flow. It never fights the trend. Goldman has been very spot on for a lot of years by identifying and riding profitable trends and I expect them to be true to that in crypto as well. I'd be very surprised if they tried to do anything but further accentuate the natural course of events. Their getting involved is a huge plus for crypto. It's another sign that things are still just warming up.
I totally agree with you on this one. They see the potential and they bought themselves a pretty comfortable "surf" to ride the tide. Also for 400M their interest is quite significant. They would never have backed this deal, if they didn't saw the ponetial for huge returns !
P.S. Did you see WeissRatings comment for BitShares ? I know you are a BTS holder and believer. What do you think for their comment that once EOS is launhed, it wouldn't make any sense to own BTS. I don't agree but, I am not that informed about BTS. Would be interesting to hear your view :)
That makes you wonder what's the current price for Coinbase or Binance... On the other hand: sure 400M is a lot of money, but if exchanges can get 1B+ in profit in a year, then it's probably a decent investment. If Circle really can solve the scalability issues and make the site a top-contender again in the exchange-business, they're gonna get pretty good bang for their buck.
I guess only Coinbase has the chance to make 1B a year, also if we take Binance Coin as a reference point for Binance's valuation, it should be around 1 Billion $. Alo the deal is backed by Goldman Sachs. Thanks for commenting.
This could be a sign of things to come. Just like you see Proctor & Gamble and Unilever own a majority of the brands in consumer goods, I believe you'll be seeing the big players in crypto buying up smaller players to diversify their offerings, and build their conglomerates.
Yes, this might happen until decentralized exchanges emerge and take a bigger part in the crypto space.
Hmm... why Poloniex has sold to Circle? Is any more strong reason?
Well, if you have used poloniex you would know that they have a big problem with customer support and maintaining their business and scaling t. I guess they are well aware of that and that is one of the main reasons.
I think it's fierce competition between platforms to bring in traders
Keep this up, Followed you for more :)
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