The emergence of ICOs took everyone by surprise. Projects discovered that they could raise millions of dollars by selling their tokens, which allowed for the development of new platforms and opened the door to investors to make significant returns. However, there are regulations in this field. In the US, ICOs were accused of selling unlicensed securities. This is where security tokens like Polymath (POLY) come into play.
ICOs are made up of service token sales. Security token offerings (STOs) make this process easier. STOs seem to be easier to legally accept. Therefore, new generation platforms have emerged with the STO. Polymath is seen as the Ethereum of these securities tokens and is currently one of the largest players in the field. Check out this Zatrun.com article to learn more about the project.
What is Polymath (POLY)?
Polymath is the Ethereum of security tokens. It is technology and blockchain-based and provides tools for creating tokenized equity. Thus, it operates as a token issuance platform. Companies can give securities tokens to investors on the blockchain through the platform. However, it is not for everyone. Investors must complete all legal compliance checks, including identity verification and anti-money laundering checks, before using the platform. The reason why it is safer against regulations is also due to these controls.
Investors can deposit their funds to buy equity shares. All these processes are carried out by the smart contracts developed by Polymath. The issuer or investor must meet the requirements offered by the smart contract before tokens and funds are released. Thus, they can invest in STOs. However, before participating in STOs, they must also verify their identity and residence address through the platform. In addition, it is a requirement for the platform to evaluate them as an “accredited investor.”
How Does Polymath Work?
Polymath (POLY) has created a token standard called ST20. The project was presented as open-source code and has a decentralized structure. The management of the platform is determined by POLY holders who control the system. This cryptocurrency stands out in processes such as creating a security token.
The ecosystem has conducted more than 200 STO’s of security tokens to date, and this number is increasing. Security token offerings are even compatible with the US, which has the most stringent financial regulations in the world. This also sets the project apart.
Additionally, Polymath is designed to be user-friendly. Investors or companies do not need to have any blockchain knowledge, meaning that companies can focus on selling security tokens. They can even use the ‘wizard’ application to create a functional security token in just a few minutes. Unlike traditional security sales, the platform eliminates intermediaries with smart contract technology. Security tokens created with the ST-20 standard can work together on the blockchain like ERC-20 tokens.
What is POLY Token? Is It a Good Investment?
POLY is an ERC-20 token on the Ethereum blockchain. It works as Polymath’s utility token with a total of one billion coins created. Just over a quarter of the total supply was sold in the cryptocurrency’s ICO. The platform holds the remaining supply in reserve.
Users can access various use cases with this cryptocurrency. For example, payments in internal transactions are made with POLY. Additionally, investors can use POLY coin for various purposes such as token creation, compliance checks, and network maintenance.
The Polymath platform offers assets that potentially can become tokens in two different ways. These can be defined as liquid assets and illiquid assets. The first group includes stocks and bonds, while the second group includes real estate, art, and intellectual property rights. With POLY, companies can tokenize these assets and offer them for sale.
POLY coin reached its all-time high of $1.40 shortly after its launch in February 2018. However, the asset has not come close to these high levels since February 2018. Even during the 2021 bull season, the cryptocurrency’s price only reached $0.91. However, it is predicted that the value of security tokens will increase in the future. Therefore, Polymath, which operates as a start-up platform for security tokens, could see significant adoption in the future.