They are calling it “Circle Poloneix” for now, and this is a game changing move in the world of cryptocurrency exchanges. Called a “win win for both companies” by executives of Circle, this is perhaps the biggest move in the rapidly moving world of cryptocurrencies.
Previously shut down in December of 2016, Circle customers benefit from the ability to again purchase and sell bitcoin and many other forms of cryptocurrency.
On the other hand, Poloniex, which I reviewed here, benefits from the move on news that their business slowed in recent months due to complaints over it’s level of service.
While the acquisition price has not been announced, rumors are swirling that the cost may have neared $400 million. What is known is that the deal has been in the works since last Spring.
Their CEO is Jeremy Allaire, and over 200 people are currently employed at the startup, with more than 100 on the horizon to keep up with growth.
What is Circle X?
The company refers to this as “Circle X,” which is a thought process involving assumptions that the exchanges won’t be segmented into types in the future. The thought process continues to view exchanges as less specialized and offering a variety of of tokens, traditional equities, and new asset classes.”
To break that down, think ETrade combining forces with Coinbase and offering all of those trading options.
Speaking of Coinbase, they are set up to lose market share in this deal. If you are new to this side of investing, read about Coinbase here.
A main objective Circle is facing is adding better service to Poloniex as well as tackle issues facing the business. There have been numerous reports of delayed transactions as well as ignored requests, which are making waves on public channels and social media. A tool called “Diameter” has been built to keep up with customer service issues. This connects to the back end and filters through requests before a human is brought into the equation. While I am all for systems and processes, humans should always be at the forefront of any customer service issue.
It’s worth noting that Goldman Sachs backed Circle. It will be very interesting to chart their growth.
Come back soon for more industry news, gossip, and rumors.