Huobi And Poloniex Merger Rumors Are Untrue
- Chinese crypto journalist Colin Wu, also known as Wu Blockchain on Twitter, said that Poloniex is set to be merged with Huobi, citing people with the knowledge of the matter as his source.
- Poloniex was acquired by Justin Sun in 2019 from Circle, the firm behind USDC while Leon Li’s firm was sold to About Capital Management with major contribution from Sun.
- The Tron (TRX) founder said that the two crypto exchanges are independent and “haven’t had any plan to merge yet” but there is a strong possibility of a merger in the near future.
- However, Huobi denied the rumors and said that rumors of merge with Poloniex are “categorically untrue.”
A rumor was circulated in the crypto space about the merger of two crypto exchanges, Huobi and Poloniex, in the near future. It is imperative to note that both of these crypto platforms are associated with the founder of the Tron (TRX) blockchain and the Permanent Representative of Grenada to the World Trade Organization, Justin Sun.
First covered by Chinese crypto journalist Colin Wu, also known as Wu Blockchain on Twitter, Poloniex is set to be merged with Huobi, sources told him. Interestingly, Wu pointed out that the volume of the former is only one-tenth that of the latter, and a merger could help both firms, which are struggling in the current bearish crypto atmosphere.
“The Poloniex exchange, which Justin Sun acquired from Circle in 2019, will merge with his recently acquired Huobi exchange, according to sources familiar with the matter,” Wu tweeted.
Poloniex was acquired by Justin Sun in 2019 from Circle, the firm behind one of the most popular stablecoins, USDC. On the other hand, the firm recently revealed that it will be selling its assets to Sun and it was rumored that the former CEO of failed crypto exchange FTX, Sam Bankman-Fried, was also interested in the acquisition deal. But later, Bankman-Fried put down the rumors and stated that FTX would not be acquiring a major stake in Huobi.
As a result, Justin Sun acquired the major stake in the Seychelles-based firm as Huobi Group founder, Leon Li, hoped that the “new shareholders will be more powerful and resourceful, and that they will value the Huobi brand and invest more capital and energy to drive the growth of Huobi.” Li sold his exchange to Hong Kong-based investment company About Capital Management, but Wu revealed that Sun was the “real buyer.”
Sun, who took on an advisory role at the exchange founded by Li, said that a merger with Poloniex was a strong possibility in the near future. The Tron (TRX) founder further added that the two crypto exchanges are independent and “haven’t had any plans to merge yet.” But he said that “it could be” possible for the two to strike a deal in the near future.
However, the fuel added to the fire by Sun was later watered down by Huobi as the exchange gave a statement to CoinDesk, stating that the rumors that it will merge with Poloniex are “categorically untrue.”
“We would like to state for the record that rumors stating Huobi will soon merge with Poloniex are categorically untrue,” Huobi said in a statement. “Huobi and Poloniex are operating independently now.”
On the other hand, the Seychelles-based exchange laid off a significant number of employees and worked with Poloniex to support ETH hard forks.