Understanding Polymath, The Future Of Security Tokens
CoinSutra » Cryptocurrency » Understanding Polymath, The Future Of Security Tokens
‘Security Tokens’ are buzzing in the cryptosphere. So much so, that if you haven’t heard of them yet, you probably are missing on a lot.
It started with protocol coins like BTC, ETH, NEO, etc., and then moved onto utility tokens such as Fatcom.
And now it is the time for security tokens.
Security tokens are crypto tokens issued to investors in a token sale or ICO for the exchange of their money. Crypto tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders are deemed as ‘security tokens’.
So far, we have covered the security tokens scene in detail on CoinSutra so I am not going to get into it again but I will leave you with our exclusive coverages:
Today’s agenda, however, is to discuss Polymath, a security token issuance platform that we have covered briefly on CoinSutra in the past.
Here is A Look At The Top 5 Security Token Issuance Platforms.
So we will discuss it based on the following points:
We all know ICOs or token sales are the new way of financing but many ICOs or token sales have been flagged as securities by the US SEC.
Moreover, businesses and cooperations that have tried to get regulated by the SEC for launching security tokens have had a tough time.
Tough time because the process is cumbersome and unclear, given the SEC is dealing with such tokens for the first time.
Sensing this problem, Polymath, a blockchain protocol for launching specifically security tokens has been conceived. Here is a simplistic video explainer of Polymath.
As you just saw in the video, Polymath makes it easy for businesses and issuers of financial products to launch security tokens on the blockchain, thus helping them bridge the gap between traditional securities and blockchain-based asset ownership and investment opportunities.
How Does Polymath work?
Polymath makes it easy for all the participants to issue security tokens in a collaborative way, thereby saving time and money for the business that would otherwise be wandering through the jungle of regulation and deregulation.
Mainly, these are the participants in the Polymath’s ecosystem that delivers issuance of security tokens by working in a collaborative manner:
Here is a workflow diagram explaining who they all work in tandem with to achieve Polymath’s goal:
In short, Polymath is making the technical challenges and legal challenges of launching a security token easier and more systematic to implement.
Polymath doesn’t have its own blockchain. Instead, it has its native token POLY, an ERC20 token thriving on the Ethereum blockchain.
POLY is used as an economic unit for all operations on Polymath platform and has its own utility in the following processes:
Polymath also has its own ST-20 token standard that the team plans to use for their issuers to launch complaint security tokens in a security token offerings (STOs).
The team comprises of developers, legal personnel, and advisors who understand that regulations about securities. The team members are listed here.
Polymath Token Supply & Polymath Market Cap
Polymath has an initial total supply of 1 billion tokens and it raised its ICO for a valuation of 96 million which is huge.
As of now, out of those 1 billion tokens, 276,420,107 POLY are in circulation. Every token is valued at $0.29, that sums up to $81 million in market cap.
Polymath has achieved fame this year and that’s why it has attracted attention from crypto markets. The markets now buy and sell POLY tokens which you can easily buy from the following services:
Polymath Token Wallets
POLY is an ERC20 token, so you have plenty of options for storing your POLY tokens safely. Some of these options have been listed below and will help you keep your POLY safe.
Note: Avoid, at all costs, keeping your tokens on the exchanges listed above.
Polymath believes that their new ST-20 token standard with their innovating processes will launch an ERC20 token-like stampede, something similar to what we saw during the utility tokens uprising.
Plus, they want to be the benchmark for tokenization of stocks, bonds, and other types of securities which have limited functionality on paper or digital form.
A blockchain based digitization will help tokenization as well as gamification of those tokens in the form of many automated processes. Some of these are:
Polymath is often confused with Ethereum, but they are both very different when compared to each other.
Plus, Polymath is not an exchange. It is a security token issuance platform but for liquidity and secondary markets exchange it has tie-ups with security token exchanges like tZero.
I feel if they succeed in propagating this method and big funds start converting their traditional shares into tokens, it will initiate a multi-trillion dollar tsunami in the crypto world.
But so far, the story hasn’t been all rosy.
Some official links that will help you stay updated on the Polymath:
If you have any questions regarding Polymath, feel free to ask in the comment section below!
Also, don’t forget to share the post On Twitter & Facebook!!
Further suggested readings:
Harsh Agrawal is the Crypto exchanges and bots experts for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in fintech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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