Poloniex keeps reimaging itself after the acquisition of the Circle app, this time phasing out risky margin trading for the US market. Margin and lending products will be discontinued by the end of the year.
“As part of our effort to continuously professionalize and improve Poloniex, we are delisting several assets and taking steps to remove our margin and lending products for US-based customers,” announced the exchange in a recent blog.
Current users of lending products will see their positions phased out over the coming months.
Poloniex explained its decisions as aiming to comply with regulations and fit into the business model of the fully regulated Circle fintech app. As part of the process, Poloniex will also delist three more assets, Synereo (AMP), Expanse, (EXP), and Gnosis (GNO). As with the last round of delistings, some of the projects were mystified as to the reasons for the delisting.
Gnosis and Synereo did not immediately comment on the delisting. The possible reason for delisting Gnosis is the project’s involvement with prediction markets and binary options. Social media for Synereo show low activity on the project, while EXP and AMP show extremely low trading volumes.
The tokens will have a grace period until October 10 for trades to be closed, and there will be another 30 days for withdrawals of the assets.
After the news, AMP slid by 15% to $0.05, GNO lost 14.95% to $21.25, and EXP lost 16.9% to $0.28.
Poloniex is starting to differentiate itself within the crypto ecosystem, moving toward compliance and low risk. The listing of USDC a few days ago means the exchange will have its own fixed-price asset. Poloniex has seen much lower inflows of Tether (USDT) compared to other exchanges. Time will tell if the presence of USDC, the fully legalized stablecoin by Circle, will show if Poloniex manages to achieve a new liquidity model.
The series of delistings, however, have invited criticism from the crypto community. Comments point out that the low volumes are not only due to the coins themselves, but to the competition of other exchanges.