Circle stripped Poloniex, its valuation plummeted 80%
Circle is a world-renowned blockchain startup with investors including Goldman Sachs, IDG Capital, Bitcoin and hedge fund Pantera Capital, providing services such as payment, transfer, and zero-cost cross-border transactions.
In February 2018, Circle spent $400 million to acquire Poloniex, the top exchange of Zeng Hongji. After a year, the two parted ways.
Last week, Poloniex and Circle announced that Poloniex has been divested from Circle and is now part of the "Polo Digital Assets" operated by an Asian investment company. A person familiar with the matter disclosed that Tron founder Sun Yuchen was related to Polo Digital Assets, but Sun Yuchen denied it.
Poloniex continues to lose market influence, with a market share of only 1%. In April 2017, Poloniex played a significant role in the overall market, with market share accounting for nearly 60%.
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Poloniex market share
Prior to the Peloniex divestiture, a large number of employees from the Circle OTC division resigned, and the division claimed a transaction volume of €24 billion in 2018, exceeding the Circle payment.
Another highlight is the stable currency USDC, which was jointly launched by Circle and Coinbase, but it is roughly estimated that the stable currency will bring a profit of only a few million dollars to Circle.
The current USDC market value is nearly 460 million US dollars
When Circle earned a bit of mainland investment in 2018, its valuation was $3 billion, and now Circle's valuation may be only $600 million.
Bitcoin plunged, a large number of altcoins returned to zero, countless public chain teams left, and the valuation of start-ups plummeted, which is the epitome of a bear market.
Related reference: https://twitter.com/fintechfrank/status/1186405981347090432
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