Circle spinning out Poloniex; new exchange plans to spend $100M and not serve US clients

Quick Take

  • Poloniex is spinning out of Circle
  • In 2018 Circle acquired Poloniex for a reported $400M
advertisement
After just one year, Circle is parting ways with Poloniex, the cryptocurrency exchange it bought for a heaping $400 million. 

In a blog post, cryptocurrency exchange Poloniex announced that it is spinning out from Circle into a new company and planning to spend over $100 million to develop this new exchange platform. 

Under the new name "Polo Digital Asset," the new platform will not serve U.S. customers. According to the blog post, beginning today, U.S. users will no longer be able to create new accounts on Poloniex. Trading on the exchange will become unavailable to U.S. customers starting Nov. 1.

The exchange said that the separation will "free us to focus on the needs of global crypto traders with new features, assets, and services." Meanwhile, Circle will focus on building its stablecoin business USDC and the equity crowdfunding platform SeedInvest, said Circle co-founders Jeremy Allaire and Sean Neville in a separate blog post

Circle declined to comment on the specific terms of the spinoff. 


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Layer-1 Platforms: A Framework for Comparison

The Block Research was commissioned by Algorand to create Layer-1 Platforms: A Framework for comparison, which provides a “look under the hood” at seven platforms: Algorand, Avalanche, Binance Smart Chain, Cosmos, Ethereum/Ethereum 2.0, Polkadot, and Solana. We assess their technical design, related ecosystem data, and qualitative factors such as key ecosystem members to get an understanding of how they differ. Having done this analysis, we draw some insights for what the future of the broader smart contract landscape could look like for years to come. 
Read Full Story
Aug 11, 2021, 5:18PM UTC
More