Poloniex Announces Acquisition of TRXMarket, a Tron-Based DEX

Cryptocurrency exchange Poloniex has just announced its acquisition of TRON-based decentralized exchange (DEX) TRXMarket. Several reports indicated that this acquisition was partly funded by TRON’s founder Justin Sun in addition to some others, who had previously invested in Poloniex Exchange with some noteworthy investment fund.

Poloniex confirmed the news via an official post on Medium, stating that it had bought TRXMarket for an undisclosed amount. According to the post, TRXMarket will operate under the umbrella of Poloniex and all of the exchange’s functions will remain the same, however, under a new name – Poloni Dex.

The post further indicated that users looking for decentralized trading services can find them on the Poloniex official website or by going straight to Poloni DEX.

Poloniex has been one of the top 3 digital currency exchanges. Founded in 2014 by Tristan D’Agosta, Poloniex is a cryptocurrency exchange that offers over 100 bitcoin (BTC) markets available for trading.

Furthermore, the platform provides its customers with a secure trading environment as well as advanced charts and data analysis tools. With no deposit or withdrawal fees, it charges a flat rate of 0.2% on all trading transactions.

In October, Poloniex spun off from Boston-headquartered Circle. Prior to this, Goldman Sachs-backed startup Circle had acquired the cryptocurrency exchange startup in February of 2018.

Poloniex noted that it had acquired TRXMarket to expand its decentralized trading ecosystem in an effort to provide its users with varied trading options – a long-term strategic design that Poloniex had been working on since 2018. This acquisition comes as a significant boost to both Tron and Poloniex as its partnership continues to create ways for more innovations within blockchain and cryptocurrency.

Meanwhile, the newly acquired TRXMarket is the first TRON-based decentralized exchange, and it executes all transactions through TRX smart contracts that are stored safely and transparently on the blockchain. The exchange does not require private keys to make a payment as users’ private assets are securely isolated from the exchange.

TRXMarket is one of the most used DEX on the TRON network, listing amongst the 127 TRON Super Representatives. In addition to that, the DEX it records, on average, a 7-day transaction volume of $30 million and has long been a top ten DApp by transaction volume according to DApp Review.

A spokesperson for Poloniex gave out a statement, in which they explained why the exchange had chosen TRXMarket, emphasizing that they had every reason to choose TRON as their underlying infrastructure over other public chains, who were slow progressing and charged high transaction fees.

“We recognize and value the rate TRON is expanding its ecosystem. Under the leadership of Justin Sun, founder of TRON, TRON’s ecosystem is growing at an exponential speed. After the official launch of TRON public chain in June 2018, within just a year, the total number of accounts on the chain of TRON has exceeded 4.1 million and the daily average number of transactions is over a million, securing a place among the top three public chains in the DAapp ecosystem.”

Poloniex Moves Abroad Due to Uncertain US Regulation Framework

Due to increasing regulatory pressures in the United States, crypto platform Circle has announced that it is expanding its global offerings with the launch and regulatory licensing of a new subsidiary in Bermuda.

The company announced on Monday via their official blog, stating that from now they will serve non-US Poloniex customers with the new Bermuda operations, and will expect to offer many new digital asset services from Bermuda over time.

Poloniex – the Boston-based exchange Circle purchased for $400 million in the height of the initial coin offering boom – has struggled to pick up market share over the past year, according to data, with a staggering difference from its today’s 1% market share and the 58% it had just two years ago.

For now, non-US customers will use Poloniex through the new Circle International Bermuda subsidiary. The company plans to release in the coming months new services including new crypto asset listings, advanced trading products, and other innovations, which will be available to all non-US customers.

Unfortunately, due to US regulatory limitations, the firm will not be able to offer many of these new services to US clients for now. However, the company will continue to serve US clients to the best of its abilities. Circle will also continue its existing operations in the US, Ireland, the UK, and Hong Kong.

After working closely with the Bermuda government, the subsidiary has been granted the Digital Assets Business Act of 2018 license (“DABA”).  Class F DABA provides a comprehensive framework for the regulation and oversight of crypto financial services including digital asset issuance, sale and redemption, exchange operations, and custodial services.

Due to the license, Circle is also required to comply with strict international standards, including anti-money laundering (AML) and combating the financing of terrorism (CFT) in ways that are compliant with Financial Action Task Force (FATF) standards.

Circle CEO Jeremy Allaire has stated that the lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.

He further added:

“The project to establish a new international operations hub for our market, exchange and wallet services, was a major project. […] It took a long time working with the Bermuda government and the Bermuda Monetary Authority.”

Looking forward, Allaire claimed more diverse assets will be soon available to global customers, and that Poloniex might also expand to financial services, which the startup previously couldn’t offer in the U.S.

The expansion into Bermuda follows its roll-out of fiat-to-crypto trading.  Meanwhile, insiders claim that the firm is hoping recent additions to its platform will save its market share from deteriorating further, like its recent relaunch of the Trollbox trader forum.

They believe this is less about Circle adhering to strict regulations and more about the firm looking for an avenue to list more tokens as it walls off U.S. clients from certain assets and regulatory pressure in the U.S. mounts. Recently, different state and federal regulators have launched investigations into exchanges including BitMEX and Bitfinex. Likewise, Bittrex has delisted a number of cryptocurrencies trading in the U.S.