Posted 2 years ago | by Ben Armstrong
Tron Founder Invests in Poloniex Crypto Exchange
Poloniex once controlled more than 50% of exchange transactions globally, but it has seen regularly declining volume in recent times. The exchange was founded in 2014 and Circle acquired it in early 2018 for $400 million. Before its recent dispersal, Poloniex had a little more than 1% of the exchange market.
Last month, Poloniex announced plans to separate from Circle, in order to form a new company, called Polo Digital Assets.
According to the company, “The new owners planned to spend more than $100 million and shift away from the U.S. to the global market.”
Not “A Purchase” - Justin Sun
After denying Tron’s investment in Poloniex, Founder of crypto platform Tron, Justin Sun, announced being part of the investor group that recently acquired Poloniex from fintech firm Circle.
Sun also told the world that, “I’m not buying anything,” via a Tweet.
At a joint Tron-Poloniex event live-streamed over Twitter on Tuesday, Sun informed media that Tron was one of several investors in the Poloniex exchange, but the exchange is operated independently from his company.
“Poloniex is one of the biggest exchanges in our industry,” Sun continued, “I think the exchange is going to grow and that’s why we collaborate with it to have more initiatives...Those initiatives include listing Tron’s tokens on Poloniex and an airdrop campaign of USDT and TRX20 for users on the platform in the next few weeks.”
New Collaborations at Poloniex
During the event Sun revealed Tron and Poloniex will collaborate on trading, and kept declining to answer any questions that would flesh out further details about the initiative or other areas of cooperation.
Sun thinks that being a part of the investor group to acquire Poloniex is a way to interest Chinese crypto investors.
“Chinese users will be able to log in through a new domain pwang.com – which still directs to Poloniex – and the exchange also accepts Chinese government IDs for Know-Your-Customer regulatory purposes,” he said.
The China Question
The recent about-face toward tokens from the Chinese government looks like a major event, and it may herald the opening of doors in the world's second-largest economy to cryptos. Cryptos have been used in China since Bitcoin came into existence, but they have fallen out of favor with the government in recent years.
Until a few weeks ago, when Xi went on the record in support of tokens and blockchain, in a very real sense.
While the Chinese government is unlikely to accommodate cryptos like Bitcoin officially, its tacit support of the market may create opportunities for forward-thinking business people-like Justin Sun.