The decision of Circle, Inc. to spin off the Poloniex business and abandon the US market has led to an exodus of deposits from the market’s wallets.
BTC and ETH Left the Exchange’s Wallets After Circle Acquisition
The Bitcoin (BTC) and Ethereum (ETH) wallets of the Poloniex exchange were quickly emptied as traders moved their coins to other markets. Additionally, the decision to stop serving US clients was the chief reason for the need to withdraw.
But the supply of coins was already diminishing at the time when Circle acquired Poloniex. The exchange lost traders by attrition and faced both regulatory and technical problems.
Poloniex’s supply of BTC and ETH plummeted after Circle’s acquisition, and are now at their lowest levels since early 2016.
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