Why Bitcoin Is Soaring: Goldman-Backed Circle Buys Crypto Exchange Poloniex
Content adapted from this Zerohedge.com article : Source
Circle Internet Financial, a company backed by Goldman Sachs is buying the cryto exchange Poloniex for $400M.
This seems to be the catalyst which lifted bitcoin higher this morning, surpassing the $10,000 mark.
The move seems to provide validation to the cryptocurrency market since one of the largest banks in the world is now a part owner in one of the largest crypto exchanges.
Circle, which allows users to transfer money via text, said in an statement on its website it will "address customer support and scale risk, compliance, and technical operations to bolster the existing product and platform." An excerpt from its statement is below:
We’re proud to announce that Circle has extended its commitment to a new vision for global finance by acquiring Poloniex, a leading token exchange platform.
Built upon a foundation of blockchain technology and crypto assets, Circle is on a mission to make it possible for everyone, everywhere to create and share value. Circle Pay helps people around the globe connect to one another and share value just as they would share any other kind of content on the open borderless internet; Circle Trade serves institutions and investors as one of the world’s largest providers of crypto asset liquidity; and our forthcoming Circle Invest app enables individuals to tap into crypto asset investment through a simple, seamless, mobile experience.
Now Poloniex addresses another key element of Circle’s product foundation: An open global token marketplace.
We want to take a few moments to welcome Poloniex, present the immediate work you can expect from us with Poloniex right now, and share what we see as its future.
The combine company will now take on the likes of Coinbase.
As Bloomberg adds, "the agreement comes as startups and corporations alike are trying to figure out whether to wade into cryptocurrencies. While many have been involved in blockchain for years, there has been more hesitancy around what to do with digital assets like Bitcoin due to volatility and a history of it being used in shady transactions like drugs and evading taxes."
Non-adapted content found at zerohedge.com: Source
Smart move on Poloniex's part selling out to GS. If you can't beat them, buy them! Here come the big banksters to the crypto party!
This is big news. Circle used to be best way to buy Bitcoins from 2015 to 2016. They had a popular app on the app store similar to coinbase but they didn't charge any fees. They lost a lot of support when they stopped selling BTC through their Circle Pay app but it's good to see them continuing to support crypto. Hopefully this will bring some more credibility to Polo as they had a pretty bad reputation before Binance and Bittrex became popular. Circle also has an iPhone/Android app in development called Circle Invest, which would be like Robinhood but they intend to support many more alts right away. I think this is big because now that they own the exchange, it's likely they will be able to support a much more broad selection on their upcoming app.
Hopefully this will lead to good things when it comes to the whole market! Since this move was probably responsible for bitcoin price going up a bit immediately, maybe the market will slowly go back up to where it was before the big crash! It's interesting to see how this will turn out for FIAT currencies in the long run if banks are getting more and more interest in cryptocurrencies.
Wauhhh...at least I have now discovered the hidden reality. I was just wondering on how Bitcoin price could rise, after a long period constant price.
Bitcoin is the leading cryptocurrency and it affects most of the remaining coins available in the market. Purchasing these assets at poloniex will make this company earn more profit since we re now living in a crypto era.
Many people are eager to join, in all corners of the world and poloniex will be there to facilitate and fulfill customers expectations. I believe this is the best ever decision that circle internet financial has ever made.
The number of cropto users is growing day by day and people will always be in need of exchanges to perform their daily transactions and I think poloniex will be there to serve them.
@jona12
I am not sure what to think about this.
It is interesting to note how Goldman got into the crypto game. For all the publicity that Dimon got and the back and forth of JPM, Goldman was very non commital through it all. Yet here we see them backdoor their way into cryptocurrency.
They are now an exchange. Goldman, an institution, is in the game just like they are with stocks, forex, bonds, mbs, and whatever else they sell. How will this change things moving forward?
My sense is this will open things up a bit for the larger players. Goldman will push to have them allowed in. That said, my feeling is we need to have more decentralization.
Goldman and the other major banks are already too powerful. I dont think this move is one to control crypto...Goldman simply sees the trading fees.
And yes I do know this is a Circle deal but we know Goldman was heavily involved...in fact I bet that is where most of the $400M came from.
Acquiring one of the leading global cryptocurrency exchanges is a huge step for Circle. This decision has indeed given bitcoin which was dropping at a fast rate some light. Activity on the cryptocurrency market is going to increase, a reason we might not see another dip for sometime.
Circle Pay will be adding on more features on top of allowing users to hold, send, and receive traditional fiat currencies. This is great for Circle.. but above all a massive opportunity for the cryptocurrency market as it will expand wider since clients making exchanges will be increasing. Poloniex has had a few flaws like the hacking that befell it back in 2014, when bitcoins got stolen from investor holdings.. Otherwise generally they have had a long clean record that has kept them in good terms with their clients. Circle, with the reputation it has built will have to start from where Poloniex has stopped to make exchanges much better. I've already had they'll be increasing token listings. Something good for the blockchain as cryptocurrency gets embedded into more professional fields. One thing I do hope is seeing various different ways of converting funds into cryptocurrencies. As there are few systems that play that role and this creates lots of traffic when exchanging. The security also needs to be hickened up to get rid of any chances of a 2014-like hack from happening again.
If bitcoin was able to survive MTGOX then basically nothing will take it down. Every month there are so many new developments that further stretch the reach of bitcoins infrastructure
I think this is good news. The fact that the Goldman boys are willing to drop 400m on crypocurrency makes me think others will be following soon. More cash into the market can't be a bad thing...... hopefully
I laugh at these hypocrites while being backed by opposition of crypto and at the same time investing in company that has to do only with crypto. It seems to me they are completely confused abou blockchain technology especially cryptocurency.
That only proves what I believe in. Crypto and blockchain has an enormous future and we should take an advantage of every dip we get.
They got bought out no wonder Poloniex was such a trading pita and killing the legacy accounts.