Circle acquired Poloniex to provide improved customer experience

On 26th February, Goldman Sachs backed payment processing platform, Circle, acquired Poloniex in a deal valued at $400mm. This means big steps for both Poloniex and Circle. Poloniex is a cryptocurrency exchange based out of Delaware in the United States that offers trading, margin trading and lending for over 100 different cryptocurrencies. The company was started just four years ago in 2014. The exchange currently pushes over 9000 BTC in volume per 24 hours, making it a relatively sizable exchange. The acquisition of Poloniex by Circle is a jump in the right direction for Poloniex and its users. Users can expect a better trading platform in conjunction to an improved customer support basis. This acquisition is imperative in the transition of cryptocurrencies into mainstream finance. A prestigious such as Goldman Sachs supporting this deal will surely attract the attention of many major financial influencers.

As for Circle, the company has created a platform similar to venmo except with an even more social media oriented user interface. Clients are able to pay one another using a messaging platform similar to iMessage. This might seem like a bit of a disjoint union between Circle and Poloniex; however, there exists a huge potential in integrating the two platforms. For example, Circle can allow for payments using any cryptocurrency from one user to the next using Poloniex’s servers. Furthermore, the acquisition brings about the potential for Circle to automatically exchange tokens, or any cryptocurrency for that matter, into Bitcoin, Ethereum or even fiat (via USDT) seamlessly and quickly. If this were to occur, Circle would become a primary competitor to Coinbase’s Toshi mobile app that already allows for messaging and transfer of Ethereum and Ethereum based tokens. Circle is now capable of offering just that and more with the ability for any Poloniex cryptocurrency to be listed and transacted within its messaging platform. This acquisition is a huge step for Circle, a company that was founded just five years ago and that has already gone global after raising $136mm in capital over the years. This is not Circle’s first time conducting an acquisition, they purchased the mobile investing platform, Trigger Finance, back in October of 2017 for an undisclosed amount. Trigger Finance gears themselves as an “investing platform that encourages rule-based investing for every do-it-yourself (DIY) investor.” The combination of Circle, Trigger Finance, and Poloniex creates a team that is fixed to make a large impact on the crypto-finance space.

By Orest Byskosh

How Bitcoin fork impacts bitcoin price and crypto-investors holding

Another bitcoin fork is on its way, with new lessons for developers, investors, traders and cryptocurrency enthusiasts. However, crypto-community is better informed about the what it can expect from the upcoming bitcoin fork.  Most of the bitcoin investors and traders are now aware that the cryptocurrency holders will receive an equivalent amount of newly created coins, which can fetch them handsome profits in practically very less time. Bitcoin price is escalating before the bitcoin split due to incessant buying to get these free altcoins. Post the bitcoin fork, the price is expected to adjust as the short-term profit encashment opportunity will cease to exist. This phenomenon of buying bitcoins and selling the newly received altcoins such as Bitcoin Cash and Bitcoin Gold for profit has become a hard fork strategy for whales, traders and investors.

Bitcoin fork and wavy bitcoin price

Constant pressure to buy bitcoins supplemented with a short term capital gain opportunity is driving up the bitcoin price. It is known that after the split, the bitcoin holders will own same number of split tokens on the bitcoin network. People who have wallet that supports forked chain software will get two tokens, bitcoin as well as split tokens. To explain this further, a person who owned 10 BTC in his wallet before the bitcoin fork, will have continue to own his 10 BTC along with an additional 10 newly split tokens (such as 10 Bitcoin cash). He may sell his additional split tokens to recoup handsome profits in very less time.

Yet another fork – Segwit2x

Scalability of bitcoin blockchain has been a concern unaddressed since its inception. With tremendous growth in number of bitcoin users, Bitcoin fork serves a probable solution to accommodate growing number of transactions within the block. After the bitcoin fork in August, which created Bitcoin Cash and Bitcoin Gold in October, the world is awaiting to witness another subsequent bitcoin fork in November.  Segwit2x hard fork expected to occur in November, is a technical compromise between bitcoin miners, developers and businessmen to increase the bitcoin block size from 1MB to 2MB. It will reduce network congestion and prevent delays in bitcoin transactions. It aims to improve overall network capacity through this software upgrade.

Crypto-community is curious to see what unfolds after the scheduled fork event. In the meanwhile, bitcoin holders are advised to keep their digital assets safe and avoid doing any kind of bitcoin transaction for at least 24 hours before the actual bitcoin fork.