Circle give up bitcoin transactions cited hot industry

Circle give up bitcoin transactions cited hot industry

Yesterday, a total of $136 million in financing the Circle company suddenly renounced bitcoin transactions, but with this announcement, many viewers said Chigua cannot read the story.

From that point of view, Circle decided to stop providing bitcoin purchase and sale service may be threatened, the company has long been discussed in the transformation, its just the bitcoin protocol as a financial base layer, rather than a consumer oriented currency.

This message may not be so big, Circle still allows bitcoin customers to transfer funds, it will continue to use the bitcoin protocol as the basis for the new mixed layer block chain platform Spark.


However, a few hours after the announcement of the decision, and its significance on the Circle debate, almost no consistent response, or a lot of people are very surprised, or is very calm, seem to have expected this decision.

One of the “calm” observer JoeColangelo, he is the chairman of the consumer advocacy group Consumers Research, in his opinion, Circle had a similar move.

Colangelo believes that in the future under more favourable conditions, Circle may reactivate the bitcoin trading service.

Colangelo told reporters:

If bitcoin as an asset of the rising demand, I expect they will choose to pick up bitcoin transactions, in fact, allow them to comply with the regulations and additional expenses fraud issues, may cause them to not be profitable.”

Representatives from the Circle explained that there are too many enterprise resources to support bitcoin transaction services, they are increasingly believe that our core mission is different.

Founder and President of Unocoin SunnyRay also showed no surprise, although he did not embrace the evaluation of Circle bitcoin’s behavior is “short-sighted”.

“They always say they are more interested in trading elements and bitcoin blockchain,” Ray said.

Why is it now?

In the industry, there are a lot of people have expressed surprise at the news, such as block chain products ARK investment management company responsible for the ChrisBurninske, he was confused on the expression of Circle, Burniske speculates that there are many reasons for this decision Circle.

He told CoinDesk:

“I guess it with the IRS (IRS) asked Coinbase customer information about, or from some conservative investor pressure, leading to the company’s attention away from bitcoin body.”

There are a lot of people agree with this view, but the Circle did not move the surface with the U.S. government actions related to tax.

In addition, like Colangelo, Burninske believes that Circle may not always leave the base layer (bitcoin trading service).

“That is to say, these decisions are not never change, one day again Circle allows its users to bitcoin transactions on the platform, it is not surprising,” he said.

Coinbase is the winner

On the surface, Circle of this decision, Coinbase is the biggest beneficiaries, Circle mentioned in his blog, Coinbase will be selected as the “priority exchange”, to guide its customers to use Coinbase to buy or sell bitcoins.

Coinbase investors, Dfj venture fund partner TimDraper, he said in an e-mail:

“Circle in market share lost to Coinbase, so they decided to change direction,” he told CoinDesk, “so, Coinbase is the big winner of the event.”

FredWilson, co-founder of Canton Vc firm, he is also Coinbase investors, he said he could not understand the motivation behind Circle.

“Although I can’t decide on the Circle for comment, but it makes Coinbase as the main body of the rapid growth of emerging markets, I feel very good,”

Wilson said.

Of course, not everyone is so positive, R3 researcher TimSwanson Twitter in his wallet and pointed out that the exchange service competitiveness in this industry has become less and less.

As the beneficiary of the event, Coinbase did not give the number of comments, the co-founder of FredEhrsam simply commented:

“At this stage of the ecological system, try different methods is beneficial to everyone.”

There are industry observers believe that, overall, the Circle strategy can be said of the wise.

For example, the writer WilliamMougayar Circle believes that the positioning is to create a global remittance market big cake.

“They are basically on the go the way of Venmo, but Circle has a global influence, a friendly user interface,” he said, “the global remittance needs a friendly user experience for users, a familiar front remittance application UI, in favor of consumers using.

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