Polymath (POLY) cryptocurrency
Polymath Network claims to be a revolutionary solution in the world of blockchains. The main goal of the project is tokenization of the securities market. Thus, Polymath develops and implements a decentralized platform. It combines the possibility of organizing an ICO and the regulation of a multi-billion dollar securities market, which can be built on blockchain technologies. The main focus is on interaction with legislation that facilitates or ensures the process of transferring securities into the digital space of the blockchain. This allows the project to avoid unnecessary complications and generate highly liquid assets. Polymath issues security tokens (ST) that comply with securities laws and regulatory authorities such as the SEC. The project team offers a full token issuance cycle, similar to how ICOs are conducted for regular utility tokens, but for Security Tokens, and this procedure is called STO (Security Token Offering). The result is ST-20 format tokens that are legalized and comply with regulatory requirements.
The ST-20 token type is an enhanced version of ERC-20, but the difference is that ST-20 has a number of features not provided for ERC-20. For example, ERC-20 tokens have no transfer restrictions and are therefore freely available for sale to anyone. If an organization plans to issue ST-20 tokens, it must ensure that the tokens can only be purchased by people who have completed the KYC or AML process and received approval. This allows security token issuers to comply with regulatory requirements due to transfer restrictions and other measures. The Polymath platform has its own ERC-20 utility token, POLY. It focuses on internal functionality and provides access to Polymath tools. The token also controls and ensures the functioning of internal transactions.
Polymath (POLY) Review
The Polymath project was created by Trevor Koverko and Chris Hausser in 2017. Trevor began his career working on Wall Street and then in Silicon Valley. Later, he became interested in the world of blockchain and began investing in projects such as Ethereum and EOS. The project team is based in Canada and consists of well-known professionals. Chris Hausser is interim CEO. Adam Dossa is currently the CTO and Mohammed Muraj is the General Counsel.
Advantages of Polymath (POLY)
- Liquidity. Asset tokenization allows issuers to combine multiple projects to attract institutional investors or split shares to exit to the retail market. This is due to lower capital deployment and record keeping costs.
- High efficiency. Tokenization promotes high efficiency by removing legacy middlemen and improving processes by reducing overhead, faster admin work, and data transfer times.
- New asset classes. Another advantage of asset tokenization is that it not only improves the efficiency and liquidity of traditional assets (stocks, bonds and real estate), but also makes it possible for new ones to emerge. structured financial products.
Disadvantages of Polymath (POLY)
- Incomplete decentralization. Most of the tokens is located by the project team, which indicates partial centralization.
- Negative influence from outside. Since the creation of security tokens is a fairly new solution, there is a possibility of negative influence or even suppression from established financial institutions.
