Is Polymath (POLY) Your Ticket to the $10 Trillion Security Token Revolution?
Regulation is the big elephant in the room with cryptocurrencies. The ambiguity regarding what kind of a token is a security and what is not remains one of the main obstacles hindering the embrace of cryptocurrencies by mainstream financial institutions and more cautious investors. While regulatory bodies around the world are beginning to clarify their positions, it has been slow in coming. The Securities Exchange Commission (SEC) in the United States for instance has recently concluded that neither Bitcoin nor Ethereum can be considered securities, but some projects built on the Ethereum network may indeed qualify as securities, and thus be subject to SEC regulation. As we’ll cover in this article, security tokens are set to explode in the next few years, and there is a need for safe, legal ways to create and trade them. This is exactly the problem that the team behind Polymath, our next Coin of the Week, has set out to solve.
What Polymath is, and How it Works
We are slowly transitioning from the “Wild West” phase of the crypto space into one with greater regulatory clarity. ICOs have raised billions of dollars in recent years, and when you’re dealing with that kind of money, it was only a matter of time before regulators began zeroing in on this new, innovative form of financing.
It is difficult, however, for ICOs and security tokens built on blockchain technology like Ethereum to comply with existing regulations. This is because the Ethereum network operates globally with no regard for borders or regulatory frameworks within states, and does not discriminate on who can participate. With utility tokens, this is not a problem, but with anything that can be classified as a security token, this is clearly asking for trouble. Polymath’s solution is to create a new blockchain ecosystem, specifically designed as a security tokens platform on which regulation-compliant tokens can be built and traded.
Polymath has its own protocol (ST-20) as well as rules that require investors to verify their identities (ensuring KYC/AML compliance) and status as accredited investors before taking part in a Security Token Offering or “STO”. Polymath also functions as a network where investors can post their ideas for new security tokens, and development teams can bid to win the contract to build them.
There is also a “Create A Security Token Wizard” that can be used to create a new security token in just a few minutes.
Anyone can purchase the Polymath token (POLY) itself, since POLY is considered a utility token used for for internal transactions with in the network. But in order to purchase the security tokens built on the platform, you need to become a verified member of the Polymath network.
In essence, Polymath aims to facilitate the launching of security token ICOs and trading of security tokens in a 100% legal manner — something that is desperately needed for governments and institutional investors to feel more comfortable with ICOs and cryptocurrencies in general.
Performance So Far
Polymath reached an all-time high of around $1.35 USD in January, and has undergone a correction since then along with most other tokens. Currently, it sits at around $0.36.
So why should you care about Polymath? This project has a solid team behind it, a clear vision of what, exactly, they are trying to accomplish, and is offering a solution to a real world problem. Security tokens represent one the most exciting opportunities in the history of cryptocurrencies. Theoretically, any type of investment can be linked to a security token, including commodities, stocks, and more. In the team’s own words, security tokens represent the next major “mega trend” in the cryptocurrency space. Some sources in have estimated that STOs could grow to $10 trillion in just the next few years. Even if you don’t purchase the security tokens launched with Polymath, buying POLY tokens offers you the opportunity to potentially get a piece of that pie.
The bottom line is that there is a growing demand for security tokens. People and companies with deep pockets want to be able to launch and trade them WITHOUT breaking the law, and if Polymath can streamline this process, it is a safe bet that this project could have a bright future ahead of it.
The Best Way to Buy Polymath (POLY)
These low crypto prices are not going to last forever, and if you want to take a position in Polymath, this is probably going to be the best time to do so this year.
The best way to buy Polymath is to link your hardware or software wallet with Faast. With one simple tool, you can trade BTC, ETH or over 100 different tokens for POLY in seconds, all without ever putting them on a centralized exchange first. Your POLY goes straight to your wallet — no fuss, stress, or nonsense required. Just a frictionless user experience.