The old good times of Poloniex are returning, thanks to Circle. After running into stagnation for a few years Poloniex has bounced back stronger under control of Goldman Sachs and Baidu backed crypto startup Circle. The trading volumes of exchange have jumped as much as 190% within 7 months of being acquired by Circle, which is a hugely unexpected turnaround.
Poloniex was one of the biggest cryptocurrency exchanges until 2015. It was the second largest exchange by daily trading volume after Coinbase, and the go-to exchange for all traders who wanted to play with smaller trading pairs made of tokens and alternative cryptocurrencies. But as more exchanges emerged and competition increased, the management of Poloniex couldn’t adapt to the changing dynamics of business. As a result, the second largest crypto exchange of some time was soon behind Bittrex, Bitfinex, Binance, OKEx, Huobi, HitBTC and many others.
Then came Circle with a $400 million acquisition offer earlier this year. Poloniex accepted the offer, though the valuation of the company for this deal was a matter of controversy. Circle had to explain the reasoning behind this valuation to great lengths. But fast forward to this day and it seems that Circle has not done a bad deal. Poloniex has once again entered the elite club of top 20 crypto exchanges by trading volume on CoinMarketCap.
Drastic improvement in customer service
The customer service of Poloniex, which had deteriorated after a decline in its trading volume, has improved considerably under control of Circle. When Circle had acquired the company there was a backlog of almost 160,000 complaints. By the end of April company had resolved 76,000 of those complaints, and the remaining ones were also being resolved at a steady pace. New members have been added to the customer support teams, and new procedures established to connect customer support teams and engineering teams more directly.
So what’s next?
While initially Poloniex used to focus on smaller trading pairs based on tokens and alts, under the guidance of Circle company has started focusing on more mainstream trading pairs. Now all major cryptocurrencies can be traded on the platform, and in the coming months Poloniex seems all set to compete with the giants of crypto market (namely Binance, OKEx, Huobi, HitBTC etc). Although we don’t know anything yet about the mid-term strategy of the company, it’s almost certain now that Poloniex is once again a force to reckon with.