March 2019 Summaries

Circle Internet Financial has marked five years since launching its over-the-counter (OTC) trading operations, which originated from a simple consumer app introduced in 2014 that allowed users to purchase bitcoin using credit or debit cards. Starting as a beta application, it quickly gained popularity, leading to the creation of Circle Trade, one of the largest OTC desks in the crypto industry, handling $24 billion in notional volume in 2018 alone. The service initially focused on bitcoin transactions but expanded to include Ethereum and other cryptocurrencies as the market grew, particularly during the 2016 bitcoin halving and the Ethereum ICO boom. By 2017, Circle Trade had grown significantly, establishing a global presence and building a reputation for integrity, trading with over 1,000 counterparties across 36 crypto assets. Despite a market slowdown in 2018 and 2019, Circle Trade remains optimistic about the future, with increasing awareness and institutional interest in cryptocurrencies, positioning itself for ongoing growth as innovation continues in the space.

Circle Internet Financial has expanded its USD Coin (USDC) ecosystem with the addition of three new supporters: Nuo Network, Deconet, and Wanchain, each utilizing the asset-backed stablecoin in innovative ways. USDC is favored by market makers and traders for its liquidity and interoperability, serving as a practical solution for integrating real-world currencies into blockchain applications. Nuo Network allows users to lend, borrow, or trade crypto assets using USDC, while Deconet facilitates project payments in stable cryptocurrencies, and Wanchain enables value transfer across blockchains with USDC integration. Loom has also integrated USDC into its layer 2 Ethereum scaling solution, PlasmaChain, enhancing the speed and scalability of USDC payments. These integrations highlight the growing relevance of fiat tokens in diverse use cases and contribute to the over 100 exchanges and platforms already part of the USDC ecosystem. USDC, established by the CENTRE Consortium co-founded by Circle and Coinbase, aims to standardize fiat on the internet and support the global adoption of stablecoins.

Poloniex's data science team has analyzed the buyers-to-sellers ratio across all crypto assets listed in 2018, revealing how network effects, new listings, and market events influence trading volumes. The analysis, which focuses on Bitcoin base currency pairs, shows that buyer-to-seller ratios are often affected by new market introductions and broader market dynamics. For instance, when new assets are listed, initial trading tends to favor buyers as investors seek early entry, though ratios usually stabilize after a few months. Specific events, like the Ethereum Classic listing on Coinbase or the Bitcoin Cash hard fork, can also temporarily skew these ratios. This analysis represents the first in a series of monthly insights aimed at providing Poloniex customers with enhanced trading strategy insights.

Circle Internet Financial has released its latest attestation report on the US dollar reserves backing its stablecoin, USD Coin (USDC), with the report prepared by the independent accounting firm Grant Thornton LLP. The report, dated February 28, 2019, confirms that the amount of issued and outstanding USDC tokens, totaling 236,917,932, is fully backed by US dollars held in custody accounts, amounting to $236,939,216. This attestation confirms that the tokens in circulation do not exceed the reserves, ensuring trust in the stablecoin's value. Grant Thornton LLP will continue to provide monthly attestation reports on the USDC reserves. Circle aims to revolutionize financial transactions by enhancing accessibility and efficiency, contributing to global economic opportunity and prosperity.

Poloniex has introduced Cosmos to its platform, becoming the only exchange allowing Cosmos ICO participants to preview and claim their Atoms balance. Cosmos aims to create an interconnected network of blockchains using the Tendermint Core consensus engine, potentially solving interoperability and scalability issues that hinder blockchain applications. Atoms, the native token of the Cosmos Network, are initially non-transferable, but ICO participants can preview their balance on Poloniex and will be able to trade them once transferability is enabled. Cosmos uses a Proof-of-Stake model for network security, offering a different approach compared to Ethereum and Bitcoin's Proof-of-Work system. Poloniex has enhanced its infrastructure and customer support, now focusing on supporting innovative projects like Cosmos, FOAM, Livepeer, and Grin, while planning more exciting developments for the future.

Poloniex, a cryptocurrency exchange platform owned by Circle, has significantly enhanced its infrastructure, resulting in substantial improvements in the speed and efficiency of transactions. The recent systems upgrade has led to deposits and withdrawals being processed up to five times faster and trade executions up to ten times faster, with latency reduced from 2500 ms to 225 ms per order. This upgrade not only improves the user experience by enabling quicker market opportunities and order cancellations but also lays a robust foundation for future enhancements and scalability within the evolving crypto ecosystem. Poloniex's progress marks a major milestone since its acquisition by Circle, highlighting efforts to stabilize the platform, reduce customer support issues, and introduce new features and projects, including being a pioneer in supporting various cryptocurrency initiatives. The exchange's commitment to becoming a premier destination for crypto traders is underscored by the simplified fee structure and ongoing developments aimed at broadening economic opportunity and prosperity globally.

Circle Internet Financial announced a reduction in trading fees for over 99% of Poloniex customers, effective March 6th, by consolidating trading tiers from 11 to 3, making its fees among the lowest of U.S. exchanges. This change is part of Circle's broader initiative to enhance customer experience, following recent technical upgrades and new features that improve the platform's usability. Additionally, Circle is launching a new designated market maker program to further enhance market participation. The company is committed to transforming the movement of money to increase accessibility, inclusivity, and efficiency, thereby promoting global economic opportunity and prosperity.