Must adapt to technological advancements in the security token space, Early in its development
What Ethereum did for tokens, Polymath will do for securities.
Low transaction costs, Has a network of services, Has decentralized protocols, Platform is made up of Ethereum smart contracts
The crypto-money markets, which were observed in 2017 as a bull market, allowed Bitcoin to increase from $1000 to $20,000 at the beginning of this year, but then displayed a long-term downward trend and continued to dominate the market over most of the past year. During this period, many new projects have come to life, and in general, project tokens were sold to investors in exchange for popular crypto-coins in a method called First Money Supply (IPA). While many of these projects have left dozens of profit to their investors, it should be kept in mind that a significant portion of these projects has gone wrong with false promises and information. Although this can be interpreted in human nature, the main factor shown by many members of the crypto-money community is the inadequacy of legal regulations.
Many of these projects, worth a total of billions of dollars, refused to give their citizens the right to participate in their IPAs, like the US and China, to avoid possible unfortunate legal consequences. Due to the uncertainty of legal regulations, some projects have included the countries that the US embargoed. The owners of mutual funds and corporate companies, which consider these two factors, are reluctant to take a position in the market, leading to the formation of a large number of crypto-money investors by ordinary citizens. However, it is not right to say that these big players are entirely unrelated to the market, but it seems more reasonable to say that the market is expected to sit on the stronger legal ground and mature.
To ripen the cryptomoney market, and provide more reliable investment opportunities, the transition from the first money supply to the security coin supply as a project funding tool has recently begun to be raised. While coins sold through IPAs are often claimed to be function tokens by project managers, it seems difficult to support this claim for many projects. This becomes even more evident when we consider that function tokens are defined by tasks such as value transfer within an ecosystem and use in network related voting. On the other hand, securities tokens can be seen as the co-operative state of real-life physical assets, and in many cases, they can be distinguished by the fact that they offer financial means such as dividends. For example, securities in the United States, due to recognition and regulation by the Capital Markets Board (SEC), give investors greater confidence. Some of the other surpluses brought by securities tokens are low price fluctuations, the market is always open, and the need for intermediaries is eliminated.
Although many stock markets and platforms have emerged to meet the demand for securities tokens, many of which are expected to trigger the next bull market, Polymath is quite ahead of many of its competitors at the moment. Polymath is a platform that enables people to buy their securities from the creation of a security token to be authenticated and to distribute the tokens at the rate of investments. With the help of the legal and developer support, the project and company owners have the potential to meet all the needs. This platform, which aims to be a securities counterpart of Ethereum's reign of the monarchy for the coin printing through intelligent contracts, uses a standard called ST-20 for securities to be hosted. The fact that the ERC-20 standard does not comply with legal restrictions and regulations for securities assets, such as not being able to limit the transfer of tokens, is one of the primary reasons for requiring a new coin standard.
Although Polymath is planning to host securities tokens, POLY is actually a function token. This coin uses the ERC-20 coin standard, designed to meet all transaction costs on its own ecosystem. Also, the Polymath team, which distributes their tokens free of charge to users who apply for a portion instead of selling it through an IPA, does not seem to be too difficult to estimate their opinion on IPAs as an investment collection tool. Finally, we need to talk about the team of the stars behind Polymath. Anthony Di Iorio, CEO of Jaxx, Bruce Fenton of the Bitcoin Foundation and Erik Voorhees, CEO of ShapeShift are just some of these names. Under the guidance of these names, it is reasonable to predict that Polymath will achieve its goals.
Most cryptomoney projects use a method called first money supply for quite some time. It was found out that the actions of some project owners who sell tokens of their projects to investors for crypto-currencies such as ETH were fraud, most do not have enough incentive to work on the project once they have received these funds. At the root of all these problems, almost anyone who wishes to create new tokens using the ERC-20 coin standard. This behavior, which shows that the crypto-money market is not yet mature enough, keeps traditional institutional investors away from the field and inflicts material and non-pecuniary damage on the crypto-money community.
It aims to resolve problems generated by the presence of IPAs and the absence of legal regulations on them. They are suggesting a comprehensive platform for Polymath securities tokens and a new type of tokens called ST-20. They expect it that the approval of the credentials of the project or company owners before the creation of the tokens will reduce the number of fraudulent actors. These tokens, which will be classified as securities in the jurisdiction of many countries, will provide more confidence to the crypto-money ecosystem while providing a safe environment for investors with risk aversion.
Trading of POLY is being carried out on 22 stock exchanges. They can offer Binance, which offers approximately 15% of the total daily trading volume and offers the possibility of trading in the POLY/BTC, POLY/BNB pairs.
Polymath offers security that we all need. We can all be hopeful that the promises of security tokens will be fulfilled as this would benefit the most of us, after all, we all want and need to be secured. They can be the leader in their field given that all went well. They are well known in the market now and is doing good with their marketing. Although there are doubts about their goals, they are claiming that this is realistic.
Pros & Cons
- Low transaction costs
- Has a network of services
- Has decentralized protocols
- Platform is made up of Ethereum smart contracts
- Must adapt to technological advancements in the security token space
- Early in its development