New Poloniex Fiat On-ramps Don’t Impress the Crypto Community Right AwayJuly 10, 2019
In the cryptocurrency world, finding a proper exchange is not as easy as one might think. Especially if that trading platform in question offers a fiat on-ramp, there is some reason to be mildly excited. In the case of Poloniex, however, the recent addition of a new fiat currency on-ramp might not necessarily get too many people excited right away.
The new Poloniex Fiat On-ramp
According to a recent Twitter message shared by the team, users of the Poloniex exchange can now buy crypto assets using USDC to and from their bank account. Additionally, there is now an option to buy Bitcoin using either a debit or credit card, which is of great interest to a lot of people. After all, the number of prominent exchanges offering that functionality is still fairly limited, even in 2019.
As one would expect, these features are not available in all parts of the world simultaneously. For those users looking to deposit or withdraw in USDC, if they live in over 80 of the eligible countries, there will be no problem. Credit and debit card support is still limited, as just over 60 countries are compatible with this functionality. A big step forward for Poloniex, although it might not make too much of an impact right away.
Card Fees are Pretty high
Despite the initial excitement, the support for debit and credit cards is not offered by either Poloniex or Circle themselves. Instead, it seems the functionality is provided by Simplex, a company which has made inroads in the cryptocurrency industry over the past few years. However, when relying on third-party service providers, there will be some trade-offs to keep in mind.
The biggest downside to this functionality is how users will pay rather hefty fees when using their payment card. More specifically, the fees are close to 3.5% per purchase, which maxes out at $10 by the look of things. It is a very high cost associated with buying the different crypto assets offered by Poloniex at this time. It will be interesting to see how successful this integration proves to be in the long run, but it is still an interesting development regardless.
Public Perception of the Exchange Isn’t Great
Even though Poloniex has been acquired by Circle some time ago, there are still plenty of crypto community members who dislike this trading platform. This stems forth from some very odd behavior exhibited by the company prior to the acquisition. Additionally, the recent regulatory-based decisions and removal of several different currencies have not made too many users happy either. Overcoming that negative public perception will prove to be rather challenging, which is only to be expected.
On Reddit, the opinions regarding this exchange are all over the place. Some call it a “scam waiting to collapse” whereas others are impressed by how things have turned around since the acquisition by Circle. If the team can roll out support for these USDC transfers and card payments to more parts of the world in the near future, things could turn in favor of this company again. One has to applaud the team for trying to become a more prominent player in this industry at this time.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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