The decision of Circle, Inc. to spin off the Poloniex business and abandon the US market has led to an exodus of deposits from the market’s wallets.
BTC and ETH Left the Exchange’s Wallets After Circle Acquisition
The Bitcoin (BTC) and Ethereum (ETH) wallets of the Poloniex exchange were quickly emptied as traders moved their coins to other markets. Additionally, the decision to stop serving US clients was the chief reason for the need to withdraw.
But the supply of coins was already diminishing at the time when Circle acquired Poloniex. The exchange lost traders by attrition and faced both regulatory and technical problems.
Poloniex was one of the first exchanges surviving for years while the crypto space was largely unregulated. The exchange also became notorious for suffering frequent outages and disrupted trading. At one point in 2019, Poloniex even faced losses based on the volatile market for the CLAMS coin, which led to significant liquidations of BTC collateral.
Poloniex angered its traders by socializing the loss of around 1,800 BTC. The funds are still not repaid, and this may be one of the factors for the holders of the most valuable coins to move out. Funds stored on exchanges are not safe in general, but socializing losses is an unexpected risk.
Poloniex also started delisting some of its coins, due to low liquidity. But the latest decision of Poloniex to delist DigiByte (DGB) caused a scandal among the community. The delisting caused a commotion among the DigiByte community and may become another factor in the outflow from the exchange.
Poloniex Gives Special Support to TRON Ecosystem
The latest actions of Poloniex suggest it has now dedicated its market to supporting the TRON ecosystem. The exchange is one of the larger carriers of TRON-based Tether (USDT), and has opened up to listing TRC-20 tokens.
TRX is even central to the passive earnings program for the exchange:
The recently launched PoloniexDEX is also the rebranded platform TRXMarket, and is being promoted now as the new tool to access coins and tokens.
Poloniex currently carries around $44 million in daily trading, a significantly lower range for international exchange. The market operator now competes with others targeted to the international market, or to regions with more favorable regulations. The exchange still hosts 98 trading pairs, after the mass delistings in the past years.
What do you think about the latest condition of Poloniex? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @Poloniex @cryptoexsahu @CoinMetrics
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