The cryptocurrency exchange Poloniex has recently announced they are spinning out from Circle into a new company called Polo Digital Assets, Ltd. In order to do so, the company received the backing of a major investment group.
Poloniex Spins Out From Circle
The main goal with this decision is to focus on the needs of global crypto traders that are requiring new features, assets and services. The information was released by the recognized cryptocurrency exchange a few hours ago in a blog post.
One of the first effects of this decision will be effective on October 21, 2019. All the spot trading fees will be reduced to 0% until the end of the year. The exchange wants to remain a competitive platform in the crypto market.
In the future, Poloniex is planning to spend more than $100 million to develop and expand the whole exchange. It will be possible to add new features and offer solutions to its user base around the world.
It is worth mentioning that they will not be able to include customers in the United States after this spin out. Circle will also have to stop offering operations for U.S. Poloniex customers. This is why starting today, U.S. persons will not be able to create accounts on the exchange.
Meanwhile, U.S. customers will not be able to execute trades on the platform starting on November 1, 2019. Nevertheless, individuals will have the possibility to withdraw their funds through Circle until December 15, 2019.
The official blog post reads as follows:
“While the Poloniex team is spinning out, we continue to be very excited about the plans our Circle colleagues have to move forward and grow as a business without Poloniex.”
Circle will continue to build a more open, global and accessible financial system. This includes expanding services related to the platform and the USDC stablecoin. At the same time, they will be expanding and growing SeedInvest, the largest equity crowdfunding platform in the United States.
Back in early 2018, Circle purchased Poloniex in order to build a broad digital asset marketplace that included a rapidly growing range of tokens and digital assets. The firm made enormous progress with the platform, including massive infrastructure developments.
Circle stated they envision a world with an open financial system with money and value moving around the world as data does and people connecting to each other through payments, among other things.