The scoop on Poloniex

in poloniex •  24 days ago 

Poloniex, the legendary OG exchange, has decided to shut down U.S operations as they were sold out to an unnamed Asian investment group.

The shutdown may seem like a black swan unforeseen event for many U.S Poloniex users, given the exchange revamping the last two years. In actuality, if you take some key details, this abrupt change shows the digital asset space is still a hot battleground of corporate and governmental arbitrage.

Circle & Poloniex

Circle bought Poloniex in 2018 for 400m and is now spinning it off on a 100m investment. At first glance, this may seem strange and abrupt. However, there was already a massive reorganization going on within Circle. They discontinued Circle Pay, and they've also suspended circle research as they focus on the USDC stable coin.

Furthermore, during the Libra hearing Jeremy Allaire, testified that the U.S is falling behind in the digital asset and cryptocurrency space and that business is fleeing to areas with more regulatory clarity. Allaire stated that the U.S is too restrictive and slow to adapt, which has forced blockchain-based innovation overseas.

The secret deal

When Circle bought Poloniex, the SEC agreed not to pursue any enforcement actions against the once infamous exchange as long as Poloniex self-regulate, and become U.S compliant.

However, it seems the U.S market, and its stringent regulatory enforcement wasn't right for the bottom line. The money-making factor may have encouraged Poloniex to renege on the deal.

Goldman Sachs variable

When it comes to investment banking Goldman Sachs is king. In the U.S stock market, they operate the Sigma X dark pools making their market-making abilities unfathomed.

Goldman Sachs are also investors in Poloniex, and they don't want to play catch up. Based on their reputation, you have to assume the trading desk and infrastructure for the digital asset space is fully functional and ready to wreak havoc.

Conclusion

Splintering off Poloniex was the next step, and this may be a hard pill for the SEC to swallow. Giving Poloniex a break didn't cut it, and they got played. It shows that decentralization with representation doesn't work for Capitalism.

Regulatory agencies are designed to protect consumers. However, there is a massive cat and mouse game to be played until the regulatory gaps get filled.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

@btcmillennial has set 2.000 STEEM bounty on this post!
logo_for-light-bg_1000.png

Bounties let you earn rewards without the need for Steem Power. Go here to learn how bounties work.

Earn the bounty by commenting what you think the bounty creator wants to know from you.

Find more bounties here and become a bounty hunter.

Happy Rewards Hunting!

None has won the bounty reward!

Verry good the ice cream

Won't be surprised if it shuts down soon. IT used to be one of the biggest exchanges not too long ago and the move could kill them off as exchanges are still a pretty competitive place. there isn't much trade liquidity on many exchanges which is why they use things like wash trading.

They've also delisted steem so I really have no interest in them anymore

@btcmillennial, And next Unfortunate aspect is Steem is also Dlisted from this Exchange. Let's hope that in near future Steem will rise more strongly. Stay blessed.

Regulation is doing more harm, stunting the growth of poloniex

Posted using Partiko Android

You are aware that people still have not been paid back the 1800 individual bitcoins it took off investors who weren’t leveraging and selling short when they had that promotion going on the ones who were not participating in scamming the system got left holding the bag while everybody who was gaming the system got their dues plus some it got brought up again in the chat and in trollbox and they kept attempting to change the subject and only answer they would nonchalantly give was if you need assistance with an individual ticket plz contact support where when you do that it gives you some bs about investigation still ongoing on their end meaning we can’t afford shit rn why you think we are getting tf out people would tods around words like exit scam but I say they were mishandling more than what most people are aware of and are just trying to get out before they get any deeper into debt as I don’t think the current management understood exactly what some of there promotions and offerings entailed long term but I’m also just assuming and there’s that whole corny one liner about hen you assume things “you make an ‘ass’ out of ‘u’ and ‘me’ ...ass u me =assume” ...see told you it was corny

You are aware that people still have not been paid back the 1800 individual bitcoins it took off investors who weren’t leveraging and selling short when they had that promotion going on the ones who were not participating in scamming the system got left holding the bag while everybody who was gaming the system got their dues plus some it got brought up again in the chat and in trollbox and they kept attempting to change the subject and only answer they would nonchalantly give was if you need assistance with an individual ticket plz contact support where when you do that it gives you some bs about investigation still ongoing on their end meaning we can’t afford shit rn why you think we are getting tf out people would tods around words like exit scam but I say they were mishandling more than what most people are aware of and are just trying to get out before they get any deeper into debt as I don’t think the current management understood exactly what some of there promotions and offerings entailed long term but I’m also just assuming and there’s that whole corny one liner about hen you assume things “you make an ‘ass’ out of ‘u’ and ‘me’ ...ass u me =assume” ...see told you it was corny

I have noticed lot of exchanges closing lately - all due to US regulatory issues. The one I used in Thailand closed for that reason. I feel like this is all about the US scrambling to get all the money and taxes they can. Also to stop the mainstreaming of crypto, and I think they are losing this battle. It's a fun time to be watching money, for sure.

I never used polinex, but in the two years I have been on steem, never have a heard a good word about them.