No – but it’s still an important deal that deserves everyone’s attention
The aforementioned rumour was confirmed by Forbes shortly after bitcoin’s pump. The acquisition of Poloniex – the 14th largest cryptoassets exchange by 24h volume and once an ‘altcoins paradise’ – by Circle, a mobile payments and cryptocurrency startup.
Backed by Goldman Sachs – which owns around 30% of the company – Circle operates one of the largest ‘over the counter’ trading desks for cryptoassets, with deals ranging between £180k to £140 million. Circle is also backed by Baidu – the ‘Chinese Google’.
While it’s interesting that both Wall Street and China are showing increased interest in the space, it doesn’t necessarily mean they are directly investing in crypto. The deal – which was valued at £285 million – is already attracting a lot of criticism.
Circle aims at becoming the US’ first regulated crypto exchange, but its apparent focus on security tokens means that it will have to comply with strict SEC regulations – which scares some consumers. Furthermore, wasn’t Bitcoin created to fight Wall Street?