Tron officially acquires the veteran exchange Poloniex

Justin Sun, the founder of Tron, has confirmed that he is one of the members of the Asian investment group that acquired Poloniex. Sun plans to leverage the exchange to further accelerate the growth of the Tron ecosystem.

In a joint live broadcast on Poloniex and TRON's Twitter account, Justin Sun confirmed his investment in the struggling cryptocurrency exchange Poloniex. During the live stream, he mentioned:

"Poloniex is currently operating independently with the original team and has received investments from several investors, myself included."

According to a report, Justin Sun is utilizing the exchange to expand the adoption of projects such as TRON and BitTorrent. Apart from listing TRX on Poloniex, they will also gradually offer various other TRC10 and TRC20 tokens.

To encourage user participation, the exchange is running several promotional activities, including waiving all trading fees until the end of the year, conducting airdrops, and launching high-yield deposit activities. Additionally, they are making efforts to penetrate the Chinese market, with Justin Sun stating:

"China is one of the main markets Poloniex is genuinely concerned about."

It is understood that Poloniex is acquiring the domain "pwang.com" to enter the Chinese market. The new domain will allow Chinese users to comply with the country's "KYC policy" by accepting Chinese government identification.

Poloniex was initially acquired for $400 million by the cryptocurrency startup Circle in February 2018. Founded in 2014, Poloniex was one of the early exchanges and was once a top exchange in terms of liquidity and trading volume.

However, according to data from CoinMarketCap, the exchange's market share has been steadily declining, accounting for less than 3% of the total market liquidity. Poloniex currently ranks 10th in liquidity and only 77th in trading volume.

In October of this year, with the support of an Asian investment group and Justin Sun, the exchange separated from Circle and established its own company, Polo Digital Assets. Poloniex plans to invest over $100 million in building infrastructure and expanding its user base.

Furthermore, Poloniex is focusing on the international market. Stringent regulations in the United States may be a significant factor leading to the decline in the exchange's business. After October, Poloniex prohibited US customers from trading on the platform.

Overall, Poloniex will set the minimum standards for KYC based on the requirements of each jurisdiction and will actively list various cryptocurrencies in the future to expand user access.

Related Articles

• Wyoming unveils the first crypto custody rules for blockchain banks
• HTC to launch EXODUS 1 special edition smartphone supporting Binance Chain

Join now to receive the most comprehensive fintech information, blockchain updates, and industry examples!