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.

Ethereum Name Service–Etherscan based naming system rises to the forefront

I am sure many of you have accidentally sent Ethereum (ETH) to the wrong address as a result of mistyping one character in the address. Fortunately, the time of typing out long wallet addresses is over. The Ethereum Name Service (ENS) is a novel network that takes after the Domain Name Service (DNS) in allocation of naming rights. However, the similarities adjourn abruptly thereafter. The ENS allows for a compression of the typical wallet addresses into a more secure, decentralised and human friendly words such as company/store titles. For instance, if a customer is shopping at a store called xmart, they would be able to pay the store by sending ethereum to ‘xmart.eth’ instead of going through the hassle of typing out the address or scanning a QR code. Furthermore, sub addresses can be created to specify transaction addresses. This means that if you would like to pay a clerk by the name of Ethan at Xmart, you would be able to send ethereum to ‘Ethan.Xmart.eth’.

The purchasing process for these addresses is a unique smart contract unlike the typical DNS auctions we are all familiar to. It takes after a closed auctioning system. This means that buyers submit their bids into the ENS and add some ETH as a security to conceal their true bidding addresses. Once the 72 hour’s bidding period comes to a close, a 48 hour’s revealing period follows directly after. In this time, users reveal their bids and are returned their security deposit. Those who fail to reveal a bid forfeit all of their ETH. The highest bidder has their ETH locked into the contract at the price of the second highest bidder while all others are given back their full amounts less a 0.5% transaction fee that is burned. Ergo, users guess as to what the highest price shall be. The winners ETH is locked for a minimum of one year at which they may choose to terminate the contract and have their deposits returned or extend their ownership further.

Currently, Ethereum Name Service has released 100% of names that are more than six characters for public auctioning. Over half a million auctions have been initiated by over 13,000 bidders participating. Over three million ETH has been deposited into the system with bids ranging from the minimum 0.01 ETH to a record setting 184,761 ETH. At the current ETH price of $293.30, this is well over $54 million dollars locked in on such an address. The system does have any errors still; at times of large Initial Coin Offerings, bids and reveals often do not go through causing the potential for massive loss in deposits.

The potential for scalability and reselling is astronomical as bids may be transferred between different addresses. However, a formal site for the reselling of addresses has yet to be established. Advocates of the Ethereum Name Service (ENS) believe that once the network is fully established and names below seven characters are released, then the potential for mainstream usage of ethereum is imminent.

My advice to all readers is to visit as soon as you can and lock in any names of relevance to you before someone else does. There are virtually endless character combinations that have yet to be bid on that might be of great value one day. Happy bidding and don’t get squatted on!

About Author –

This article is written by Mr Orest Byskosh. He is an expert from Northwestern University studying mathematics and economics. He has been following and investing in the cryptocurrency world since 2011 with a wide range of positions ranging from cloud mining to the up and coming token space.

The views and opinions expressed here are those of authors/contributors and do not necessarily reflect the views of