The situation in the cryptocurrency market is currently quite unpredictable. With big news like the last Chinese revelations, we can expect everything from the blockchain industry right now.
Justin Sun is a well-known figure within the cryptocurrency industry. The founder of TRON and BitTorrent’s CEO is making a lot of noise in the crypto world – and not always in the positive meaning of these words. Recently we brought you a story about his approach to crypto marketing. Today we have some news about his latest investment – even if the main interested person denied it at first.
The whole case concerns the US-based digital asset exchange called Poloniex. It was a part of a peer-to-peer technology company Circle. However, the exchange has recently announced plans to leave the parent organization to work on its own as Polo Digital Assets. This move is dictated by ongoing regulatory hell in the United States, which makes functioning on that market exceptionally difficult.
To avoid troubling with the local law, the company has decided to abandon the native ground and seek new clients outside the American borders, entering the worldwide market. As Circle indicated in an announcement about Poloniex “spinning out,” about $100 million have already been invested into the project by an outside investment group.
After this news is revealed, reports have claimed that the investment mostly comes from Asia, with Justin Sun leading the whole initiative. However, TRON founder has been denying any connections between him and Poloniex. Until suddenly, he revealed his involvement during a live stream on Twitter last Tuesday.
An (un)expected partnership
Justin Sun admitted that TRON was one of the initial group of investors. He expressed his faith in the exchange and the will for further cooperation. Currently, the partnership results in listing TRON’s tokens on Poloniex. Moreover, airdrop campaigns of USDT and TRX20 are planned to be issued in the near future on the exchange.
During the live stream, Justin Sun also described Poloniex’s strategy for opening up to the Chinese traders. Investors from China will be able to log in to the Poloniex through a separate domain, and the exchange itself will support the Chinese governmental Know-Your-Customer regulatory.
However, the other aspects of the cooperation between TRON and Poloniex are not revealed yet, so we can only guess about the final shape (and effects) of this partnership. Moreover, Justin Sun clearly stated the character of his relation with Poloniex, describing it as just a friendly favor.
Crypto shift toward Asia
The Poloniex transformation is an interesting example of changes in the cryptocurrency world. Previously strictly oriented on the US market, the exchange had to reshape their approach because of the political situation in their native environment. It resulted in an opening on the worldwide market, with the exclusion of the American traders. It is a radical change since those traders were previously the main customers of the Poloniex exchange.
The lack of previous user base creates a demand for the new traders. And Poloniex is likely going to find them without any problem. Special dedication to the Chinese market was clearly noticeable during Justin Sun’s live-stream. And no wonder, since Asia brings great potential into the cryptocurrency industry. And recent revelations about China’s shift toward the blockchain technology have only made it stronger.
In the meantime, the United States hasn’t come up with the proper solution to crypto regulations yet. The government is currently struggling with Facebook’s Libra and seems to have no real idea of how to resolve the cryptocurrencies matter from the legislation perspective. The unstable crypto situation in the US brings blockchain companies closer to China.
Artykuł Justin Sun’s Invests In The Poloniex pochodzi z serwisu Blockchain24.co | portal with cryptocurrency bitcoin & blockchain news.