The company bought Circle cryptocurrency exchange Poloniex for $400 million.
Today, February 26, payment company Circle announced it had acquired American cryptocurrency exchange Poloniex. The newspaper's sources claim the Fortune that the amount of the transaction amounted to $400 million. the Official confirmation of the figures from the companies participating in the transaction has not been reported.
Rumors of the impending deal went at the beginning of the year, but then they didn't seem realistic and few people in the community gave them value.
The company Circle, one of the leading investors of which is a Bank holding company Goldman Sachs, includes three departments: Circle Pay (transactions with Fiat currency), Circle Trade (the liquidity provider of cryptocurrency) and Circle Invest responsible for preparing the application through which individuals can invest in cryptgenkey.
The exchange Poloniex provides the ability to trade 68 different coins. According to CoinMarketCap, the exchange occupies the 14th place in terms of the daily turnover. The total trading volume now stands at $140 million.
In a statement published in the blog Circle, co-founders of the company Sean Neville and Jeremy Blair wrote that first Circle will be engaged in providing customer support, and also will pay attention to technical problems, the solution of which is necessary for the operation of the platform Poloniex. Further plan of Neville and Allaire the following:
...scale Poloniex vertically and horizontally, through market expansion and localization; work to expand a list of tokens where necessary and appropriate, and in practice to investigate the nature of the work as possible with Fiat money (dollar, Euro and pound sterling), Circle who already uses the products, Pay, Trade and Invest.
How to write Neville and Blair they want in the future, Poloniex has become something more than a cryptocurrency exchange, namely the "dynamic versatile distributed platform trading, where there will be tokens that represent different types of values: physical goods, campaign Finance and stocks, real estate, the fruits of creativity (artwork, music, literature), leases, rents, loans, futures and more."
Press release, Poloniex resonates with the mood of the Circle. Exchange talks about their expectations from the transaction are the following:
We hope with the help of the Circle to increase the scalability and reliability of our platform and operations. In the first place for us is user experience. In an attempt to create a marketplace token, which will change the very foundations of the global exchange of values, we cannot aspire to less than the absolute perfection of our products.
During its existence the Circle has attracted investments for the sum about $140 million from such financial giants as Goldman Sachs, General Catalyst Partners and IDG Capital. Poloniex did not disclose its investors, in the public records not listed any venture capital funds or financial institutions.