Back in late 2017 Poloniex was the place to be in crypto. The hands down volume leader and alt-coin king that managed nearly 60% of stated crypto exchange trading volume. Those halcyon days are long past and Poloniex now processes less than 1% of the industry’s trading volume. One could call Circle’s $400M acquisition a disaster, but that might just be a bit too kind.
Via Poloniex’s blog today:
” We are excited to announce that we are spinning out from Circle into a new company, Polo Digital Assets, Ltd., with the backing of a major investment group. The spinout will free us to focus on the needs of global crypto traders with new features, assets and services. Our first new offer to Poloniex traders is that effective October 21, 2019, all spot trading fees will be reduced to 0% until the end of the year. Poloniex intends to continue beyond that with highly competitive and creative pricing models for traders.”
The advent of KYC and AML destroyed Poloniex’s leadership position as most users ignored the new regulatory requests and took their account, eventually, to Binance. Binance, of course, is the current leader amongst crypto exchanges when it comes to volume.
Poloniex attempt to shift back to a stand alone entitiy as well as ‘re-brand’ is interesting and worth watching. But a ‘death spiral’ is just that when it comes to exchange volume. Volume is the game when it comes to any exchange anywhere, in crypto or in traditional finance. Cut and dried. Two years go Poloniex was the unquestioned volume leader; now, they are just a footnote.