American exchange Poloniex has announced that it will withdraw from Circle and become Polo Digital Active. With the help of investments made by an unnamed Asian company, Poloniex will change its strategy.
Polo Digital Active will not be available to customers in the United States, and Circle will close operations for Poloniex customers in the US. Starting November 1, 2019, US customers will no longer be able to transact and have until December 15, 2019 to withdraw their funds.
The new company plans to spend $ 100 million for the business over the next few years.
Users will also be able to benefit from zero trading fees from October 21 until the end of the year.
Circle loses ground on the crypto market
Circle acquired Poloniex in February 2018 for $ 400 million and introduced some improvements in the 18 months it held the exchange. However, according to the official announcement, Circle simply could not provide what Poloniex needs to achieve its vision.
At the end of September, the company announced its decision to discontinue its market research activity offered by Circle Research. On September 30, the Circle Pay payment application was also closed.
At the time, the company claimed that it wants to develop new financial products. The development of new wallet services and the adoption of cryptocurrencies through Poloniex were planned.
Circle recently acquired SeedInvest and plans to help more companies reach their fundraising goals. To bring the world together in an “open financial system”.