Poloniex is leaving Circle - Discussion

[figmentofmyass]

Yeah, the United States is a big market, but our government is implementing a lot of restrictions on all of these exchanges. They're simply doing it just so they can collect tax money on everyone. That's why we can't hardly use any exchanges without submitting a KYC and passing verification.

it's deeper than that---circle was wrong about their entire business model. they badly misgauged the regulatory situation when they bought poloniex less than 2 years ago and i think the biggest source of problems was the SEC.

when they bought polo, they specifically planned to pursue regulation as a registered broker dealer (but not a national securities exchange) operating under regulation ATS.
https://twitter.com/nathanielpopper/status/968202570719117313?lang=en
https://www.sec.gov/foia/docs/atslist.htm

they were hoping to be the first SEC-regulated altcoin/token exchange. since they never established broker dealer registration (precluding them from making the ATS list) it's obvious the SEC refused to play ball.

that left them with a lowly shitcoin exchange being forced to delist USA markets left and right, instead of being a first mover in a regulated market. now it looks like they are just giving up and jumping ship, acknowledging that the dream is dead.

[exstasie]

Like others are saying, on the face of it, seems like a strange decision, judging from the fact that most Bitcoin trading volume still comes from the US but if anyone's actually used Polo recently, the state of affairs is so sad, compared to 2 years ago.

Circle's probably right that the operation can't be salvaged as is. It's basically a dead exchange.

Pulling out of the US market makes sense for the new owners if they want to put in minimal capital. I'm sure it would reduce their compliance costs to a small fraction of what they used to be. I doubt they'll bring back unverified accounts but axing US customers makes it a slight possibility. That would increase their traffic for sure.

As a side point, this move is actually pretty exciting if we look at a timeline of Circle's life:

• Oct 31, 2013: They launch a month before the 2013 bubble pops.
• Dec 7, 2016: They exit the Bitcoin exchange business right before the 2017 bubble launches.
• Feb 26, 2018: They acquire Poloniex 2 months after the 2017 bubble pops.
• Yesterday: They announce they are selling Poloniex.

I don't want to jinx it but.......where do you think the market's headed now?

[The Sceptical Chymist]

Circle's probably right that the operation can't be salvaged as is. It's basically a dead exchange.

From everything I've read, I'd have to agree with you there--but for a long time they were a very popular exchange, and I wonder how they fell from grace so badly.  It isn't as if they have customer service issues like Yobit does or don't have an extensive coin selection. 

Circle jumped the shark when they stopped selling bitcoin, and man do I miss their service the way it used to be.  It was so easy to buy bitcoin back then with cash.  Weirdly enough, Poloniex had just started offering bank account linkage to US customers whereby you could wire money to your account.  That's too much of a pain in the ass for me to do, but at least it was something. 

So my point is: screw Poloniex and screw Circle.  They're both dead to me.

[exstasie]

Circle's probably right that the operation can't be salvaged as is. It's basically a dead exchange.

From everything I've read, I'd have to agree with you there--but for a long time they were a very popular exchange, and I wonder how they fell from grace so badly.  It isn't as if they have customer service issues like Yobit does or don't have an extensive coin selection.

Poloniex had horrible customer service issues in spring 2017 when altcoins bubbled up. Support tickets going unanswered for weeks, stuff like missing deposits and withdrawals, etc. That drove everyone to Bittrex. They never recovered after that, especially after implementing mandatory KYC. It was already becoming a ghost town by the time Circle took over.

[ReiMomo]

Well, in that case, I think much better to look for another exchange site in order for you to be able to be safe and won't lose your investment. Actually there are many reputed exchange sites out there but you must choose the trusted sites first before you put your investment so that you can be able to assure that you can't fall in the trap and for a better profit from it.

I still prefer to use the Binance exchange even though they had a hacking incident that happens a few months ago. From now on, I will consider that Poloniex is my ignored list exchange.

[ableh]

Before they made this decision, the volume in there had fallen a lot if compared to the previous year. Although they will continue to operate I'm sure this will not last long, because the largest volume of Poloniex comes from US traders. Unless they make new innovations that can attract fresh / old traders to trade on Poloniex.

[Theb]

That sounds like leaving your funds on the exchange after December 15th will mean they are completely lost. Instantly becoming the property of Circle (we can only assume).

Now, I’m not saying this is abhorrent, but I would say it’s a synonym - repulsive, despicable, loathsome. Only giving people two months notice to move their funds, otherwise they are gone.

This just fits perfectly into the downward trend Poloniex has cleared for themselves.

Just my two cents regarding in this situation, I guess that the two month withdrawal period wasn't their choice alone. Remember that Poloniex is “spinning out” from US and we should take note that the US government is keeping their crypto industry on a short leash that any kind of faults or loopholes on their businesses would mean a catastrophe on them. If the US authorities still spots assets from US citizens being held in their exchange then they would be instantly accused on things like they are operating illegaly in US soil, trust me they have done this in the past and I doubt that they won't do it again.

[milewilda]

Before they made this decision, the volume in there had fallen a lot if compared to the previous year. Although they will continue to operate I'm sure this will not last long, because the largest volume of Poloniex comes from US traders. Unless they make new innovations that can attract fresh / old traders to trade on Poloniex.

I wont say that volume did go down from previous year because when the time Circle do take the spot the entire reputation and popularity of Poloniex had been
greatly affected.

Remembering up the days where this exchange flying up with colors and been preferred by most traders or shall we say its on the top of the competition wayback
but things turns upside down when Circle is already involved.

[nelson4lov]

Even if they rebrand, I don't think there's still a spot for Poloniex. Circle did a great deal to keep it afloat and relevant but I think they got tired. It's still shocking. To think Poloniex was one of the top and fastest growing exchanges at the time. US has really f**ked with a number of exchanges. Poloniex, Bittrex and now Binance. Except they come up with a completely new and innovative offering, This could well be the end of Poloniex.

[Markettrust]

If you look at poloniex from 2016 to 2019 kts a disaster.
From 98.000.000 to 11.000.000.

[EdvinZ]

I think the Poloniex exchange should follow the example of the Bittrex exchange and open a subsidiary to Asian and other users around the world. Then I am sure that this old exchange will again be able to increase the audience and trading volumes on it will increase. If the Poloniex exchange team is flexible and enters new markets, they will certainly succeed.

[Irvinn]

I think the Poloniex exchange should follow the example of the Bittrex exchange and open a subsidiary to Asian and other users around the world. Then I am sure that this old exchange will again be able to increase the audience and trading volumes on it will increase. If the Poloniex exchange team is flexible and enters new markets, they will certainly succeed.

The cryptocurrency market has a certain number of cryptocurrency exchanges that have already shown their potential and many users are interested in their activities.  But really, the current trend in the cryptocurrency market is unsuccessful for such exchanges.  Therefore, you rightly said that these exchanges, including Polonix, need to remove restrictions that harm them and reduce their prospects.  If these restrictions are not canceled, then closing is really waiting for the exchange, because trading volumes are declining very actively, compared to previous years.

[ashmodeus]

well, expanding the market by leaving their main market.
i dont know exactly what happen on US crypto market , first bittrex with weird think wich block poor country using their exchange and now poloniex do a weird thing too.
i just have a little speculation about it.
1. they will do a same thing like another exchange in the world , with add a Hyip token on their exchange to incrase their popularity again but of course , to do that, they must have a choose to leave the Circle.
or 2. some holy big whales investing to poloniex for make a new thing . because as i see on their blog "we have a multiyear plan to spend more than $100M to develop and expand Poloniex",which means that the funds are not necessarily their own funds.

but well, whatever they do, they know exactly the consequence for it.
by the way, 0% trading fee seems not bad enough.

[bitgolden]

Life continues, poloenix is not the only exchange that is available in the market, if exchange like this leave the US market, they will only give chance to more exchanges to spring up because now is when US citizens will really be looking for exchanges to use, though we have some exchange already in the market that can be very useful.

Binance has already established an exchange for them, so closing poloenix now will only give more trade volume to binance because that is the next place the US traders will focus on more. I think that kucoin is also another exchange that does accept the US citizens and kucoin has been a very great exchange also. I do not know the reason why poloenix is leaving the US market, but I know it will be to their own disadvantage.