Poloniex has announced that it is spinning out from Circle to place more emphasis on new features, assets and services and the needs of global crypto traders. Poloniex spins out of Circle to focus on global traders.
The new firm, Polo Digital Assets, is formed with the backing of a major Asian investment group, according to a couple of blog posts.
The company said it has a multi-year plan to spend more than $100 million on Poloniex’s development and expansion and to reduce all spot trading fees to 0% by the end of the year.
Sadly, they will not be able to include U.S. customers in the spin-out to remain competitive on a global scale, and Circle will wind down operations for U.S. Poloniex customers.
Per the blog post, U.S. customers on the exchange will no longer be able to carry out trades starting November 1, 2019. They can withdraw their assets, however, until December 15, 2019, when trading ends.
The company, in a blog post, wrote:
“It is bittersweet for Circle to see this incredible product and business spin out on its own … We’ve made enormous progress with Poloniex, including massive infrastructure improvements, adding more fiat options with USDC integration, launching best in class native apps for traders, and building global operations capabilities that can deliver excellent customer service.“
In February 2018, Circle acquired Poloniex for $400 million. The company earlier stated that it wished to develop new financial products such as a mobile wallet service and promote the adoption of digital currency by Poloniex.