Cryptocurrency exchange Poloniex has acquired TRX Market in an effort to add a decentralized exchange to its portfolio. The decentralized exchange (DEX) is now known as Poloni DEX, while all functionality will remain the same. Poloniex announced the TRX Market acquisition in a blog post, but didn’t reveal any financial details.
Poloni DEX is a decentralized exchange build on the Tron blockchain. All transactions are executed via smart contracts, while users keep full control over their own funds. Hacking Poloni DEX won’t get cyber criminals 50 million dollars worth of tokens, like the Upbit crypto heist that happened on Wednesday.
On average the decentralize exchange has between fifty and seventy active users at any given moment. According to data from Dapp.Radar the exchange trades around 340 thousands dollars per week. To put that number into perspective: Poloniex has 228 million dollars of weekly trading volume, and is only the 86th biggest exchange in the crypto market according to CoinMarketCap.
New marriage between Tron and Poloniex
Poloniex is a cryptocurrency exchange based in the United States. Over the years the exchange lost its leading position to Binance and other exchanges. An acquisition by investment group Circle didn’t help. As a result the exchange went solo again, and got a 100 million dollar investment from an Asian investment group. CEO Justin Sun from the Tron Foundation was part of the group investors.
Poloniex already listed TRX, and will add more TRC10 and TRC20 tokens soon. It’s very clear that Poloniex is a way for Justin Sun to create more liquidity for his crypto projects, which include BTT and TRX.
In the coming month Poloniex will expand into China. The exchange will use a new domain, pwang.com. Pwang is a Mandarin nickname for Poloniex. The new portal onto Poloniex will allow Chinese customers legal entrance to the exchange as it follows local know-your-customer requirements.
Ever since Poloniex moved away from Circle, things have been going up. The exchange has seen user growth as its market share grew from 1 percent in early October to 2 percent in late November, according to research by The Block. The exchange has implemented a zero trading fee program, giving trading benefits to its users. This could be one of the reasons behind the growth.
Also published on Medium.