One of the largest Cryptocurrency exchanges Poloniex announced today that they have been acquired by Goldman-Sachs funded startup Circle:
We’re proud to announce that Poloniex will be joining the Circle team as of today, February 26. As we have collaborated closely with Circle on this union, we have come to a deep mutual respect and strong alignment in our vision for the future of the global crypto ecosystem. Circle is thrilled to welcome Poloniex and our users into their growing global business and to work together to accelerate the evolution of the token economy.
Although no official value of how much this deal cost Circle it is has been rumoured by Fortune magazine that the deal went through for $400 Million:
A person familiar with the terms of the deal who was not authorized to speak about it tells Fortune that the price tag comes in around $400 million.
What Does This Mean?
Well it certainly gives Poloniex users a little more sense of security when holding assets on the Poloniex exchange, whether this is with good reason or not remains to be seen but with such a high profile startup such as Circle now owning the popular exchange it seems far less likely the exchange is going to cut their losses and run off with users funds.
Circle is simply put a global payment service which offers various payment services utilizing blockchain for cheap and fast transactions across borders. They have their own Bitcoin Wallet and are also venturing into the Chinese markets.
Poloniex has suffered the same concerns from it’s users over the past 12 months as all the other major exchanges, liquidity and customer service. With an ever increasing demand on the exchange servers and customer service many people have been reporting support tickets being left unanswered for months, withdrawals and deposits often remaining ‘stuck’ for weeks at a time and continual DDoS attacks at highly inconvenient times. With this new acquisition we can expect that at least some of these issues will be addressed sooner rather than later.