Cryptocurrency exchange Poloniex now controls the largest decentralized exchange (DEX) on blockchain network Tron (TRX), official reports state.
Confirmed by Tron CEO Justin Sun on Nov. 29, Poloniex will now operate TRX Market under the new name “Poloni DEX.”
Poloniex “Acquires” the Decentralized Exchange
The move comes a month after Poloniex itself spun out from owner Circle to form a new exchange that addressed regulatory problems in the United States.
According to Sun, Poloniex “acquired” TRX Market, while it remains unknown what changed hands and what financial value the deal generated.
“To maintain the development of TRXMarket over the long term, the team has accepted an acquisition offer from Poloniex and will rebrand with the new name Poloni DEX, becoming a decentralized exchange under Poloniex. The official website has now changed to poloniex.org,” an accompanying blog post from Poloniex issued on Nov. 27 reads.
TRX Market functions as a non-custodial exchange that does not require users to store funds in a centralized wallet.
TRX Reacts Briefly
Sun’s wording nonetheless appeared to confuse social media users. Mati Greenspan, senior market analyst at fellow trading platform eToro, quizzed Sun about how a notionally decentralized entity could possibly be placed under another entity’s control.
Poloniex meanwhile promised long-term beneficial effects for Tron as a result of the takeover.
“This acquisition is bound to be a very significant move for the TRON ecosystem, signaling the exchange sector’s trust and recognition of TRON,” the blog post claims.
As of press time, TRX/USD had come down from its modest boost following the announcement, shedding around 2% in the past 24 hours.
According to a report by Cointelegraph, Sun hit the headlines earlier this week after pledging a $1 million donation to a fund specifically designed to fight negative publicity of cryptocurrency businesses. The idea came from Changpeng Zhao, CEO of exchange Binance, following a well-publicized tussle with local industry media outlet The Block.