Circle to Lay Off 10% Staff

30 people are now going to look for new job due to "organizational changes"
22 May 2019   223

The company Circle, which owns the cryptocurrency exchange Poloniex and the crowdfunding portal SeedInvest, has reduced 30 employees, which is about 10% of the staff.

Today we made organizational changes at Circle and eliminated approximately 30 positions, which is about 10% of our employees. We made these changes in response to new market conditions, most importantly, an increasingly restrictive regulatory climate in the United States. Circle remains strong and healthy, and we will continue to drive new product innovation and growth globally, working with jurisdictions that offer forward-looking policies regulating digital asset businesses, while we press for more balanced crypto policy in the U.S.

Jeremy Allaire

CEO, Cirle

First of all, the cuts affected the main office of Circle in Boston. The company also liquidated several positions in the departments of finance and product development in the New York office. 

He also added that due to regulatory uncertainty, Poloniex was forced to restrict access to certain assets to US residents. In particular, the site will stop trading assets ARDR, BCN, DCR, GAME, GAS, LSK, NXT, OMNI and REP. The changes will take effect from May 29.

According to The Block, the company also revised its investment plans. Informed sources said that in the next round of financing Circle intends to raise $ 150 million instead of $ 250 million.

Poloniex Marginal Lenders Lost $14m Due to CLAM Crash

CLAM lost 77% of its price in just an hour, leading to this horrible consequences
07 June 2019   352

The American cryptocurrency exchange Poloniex reported that financed margin trading users lost 1800 BTC (about $ 14 million at the current exchange rate) due to a sharp drop in the CLAM rate and extremely low liquidity of this coin.

On May 26, a sudden, severe price crash in the CLAM market caused a number of margin loans to default, resulting in a roughly 1800 BTC loss in the Poloniex BTC margin lending pool for non-US customers. Today, we recognized the generalized loss across lenders in the BTC margin lending pool. As a result, the principal of all active BTC loans as of 14:00 UTC today has been reduced by 16.202%. This impacted 0.4% of Polo users.

Poloniex Team

According to the representatives of the exchange, on May 26, the so-called Flash crash of the CLAM (228th place by market capitalization) occurred, as a result of which the coin fell by 77% in less than an hour. 

Rate collapse caused a wave of liquidations designed to reduce losses and repay loans to lenders. Poloniex claims that 0.4% of the total number of users of the exchange suffered, and the volume of the marginal lending pool decreased by 16.202%.

CLAM Price Chart
CLAM Price Chart

First, the velocity of the crash and the lack of liquidity in the CLAM market made it impossible for all of the automatic liquidations of CLAM margin positions to process as they normally would in a liquid market. In addition, a significant amount of the total loan value was collateralized in CLAM, so both the borrowers’ positions and their collateral lost most of their value simultaneously. As a result, some borrowers were unable to repay their loans with the digital assets they held on Poloniex.

Poloniex Team

Also, the company said that as long as borrowers do not repay the specified cost, their accounts will be frozen. The very same stock exchange promised creditors to return their funds as soon as she manages to pay damages.

Lenders impacted will see the reduction in their accounts when they next log in.

Poloniex Team

To avoid such losses in the future, the exchange will remove the assets of BTS, CLAM, FCT and MAID from the marginal section. In addition, additional measures will be introduced to monitor risks when trading with borrowed funds, as well as measures to prevent strong price slippage and excessive concentration of marginal positions.