Acquisition of Circle Leads Poloniex Wallet Users to Yank Out Funds

The Poloniex exchange has been the subject of some controversy through the years, delisting multiple popular tokens and joining forces with the TRON Network. Could the separation from Circle be the last straw, leading traders to withdraw their deposits and abandon the exchange?

  • Poloniex has delisted many coins through the last few years of decreasing liquidity, leaving the platform with just 98 trading pairs.
  • One of the most controversial coins to be delisted was DigiByte, which may have led to the gutting of the exchange.

Circle, Inc. recently made a game-changing decision for their customers, abandoning the US market entirely as they moved away from Poloniex. However, the decision has led many consumers to a drastic decrease in deposits for wallets on the Poloniex exchange. According to a recent article by Bitcoinist, the Bitcoin and Ethereum wallet users moved their coins to other markets instead, citing the decision to leave behind the US market as the main reason.

By the time Circle original acquired Poloniex, the supply of coins was already starting to dwindle. The exchange was dealing with technical and regulatory issues, and their traders were slowly decreasing. Tweets by CoinMetrics revealed that the supply that Poloniex held of BTC and ETH dropped dramatically during the Circle acquisition. As it stands, the exchange has not seen levels this low since 2016.

While the cryptocurrency market wasn’t regulated, Poloniex stood strong as one of the first exchanges to actually survive the years. However, the exchange also recorded many outages and disruptions in trading during that time, leaving it with a reputation for being unreliable. As recently as this year, Poloniex was forced to liquidate BTC collateral, leaving them with losses over the volatile CLAMS coin.

The socialized loss of about 1,800 BTC greatly angered traders, and the funds have still yet to be paid, which Bitcoinist suggests is one of the reasons that some traders have walked away from the exchange. While many analysts and experts would advise consumers not the store their funds on the exchange, the socialization of losses was definitely unexpected.

With the low liquidity, Poloniex also had to delist some of the coins that it previously had touted, which has mostly been unproblematic. However, when the exchange pulled DigiByte from their listing, the community became enraged, potentially becoming one of the reasons for the substantial outflow from Poloniex.

Considering the recent path that this platform has taken, Bitcoinist suggests that the focus of Poloniex is on the Tron ecosystem. As one of the larger carriers for the TRON-based Tether token (USDT), their listings have recently been opened up to other TRC-20 tokens. In fact, the TRX crypto asset is even an integral part of the earnings program for Poloniex, according to recent tweets from the latter.

Following this trend, the PoloniexDEX, which only recently launched, has already rebranded as the TRXMarket, now being used as a way for traders to access related coins and tokens.

Presently, daily trading accounts for $44 million on the Poloniex exchange, though these numbers are relatively low for an international exchange. Even with the many delisted tokens, the exchange still has 98 trading pairs, giving them a little standing against the competition of the market.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,466FansLike
2,795FollowersFollow
4,236FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex Offers $400M Reward For Info on 120k BTC Stolen in 2016; Hackers Can Collect Too

On August 2, 2016, Bitfinex experienced one of the biggest crypto heists of all time, as hackers exploited the system, running off with approximately...

Crypto Trading Platform, 2gether, Unable To Refund $1.4M Hack; Offers Its Native Tokens

Spanish cryptocurrency trading app, 2gether announced on Sunday the platform faced a hack on July 31 on its investment coffers losing €1.183 million ($1.4...

Venture Fund to Invest Majority of $100 Million Raised Fund in DeFi Protocols

San Francisco-based venture fund Electric Capital has raised $100 million from university endowments and other non-profits and it will be using this to invest...

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to...

Ethereum 2.0 Final Testnet, Medalla, Rolls Out; Is A 2020 Launch Now In Sight?

The Ethereum 2.0 Phase 0 Medalla public testnet finally went live on August 4, 2020 at around 1AM GMT giving hope of a possible...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today