The increased regulation clarity in crypto space is noticeable – “Wild West” days are over and shady projects are falling under the authority scrutiny almost on daily basis. This development benefits the legit projects in the space and one project in particular – Polymath.
The self-proclaimed utility tokens are yet to be assessed by the officials if they really are what they claim to be. A good subset of today’s utility tokens will probably be classified as securities which will lead most of them to perish eventually.
Such chain of events will catapult security tokens to the crypto mainstream in the next few years, and there is a need for safe, legal ways to create and trade them. This is where Polymath steps up.
Polymath exists because it makes the process of creating your own security token incredibly easy. A non-technical person can now create a financial security in 10 minutes! Additionally, on the Polymath platform issuers can receive introductions to all the parties they may need for their token creation and offering (law firms, transfer agents, custody providers, etc).
If you are a developer, and you are comfortable deploying a token that is compatible with ERC-1400, and you don’t need the Polymath Token Studio, you can do it on your own!
Token Studio on Polymath Testnet had some updates but not yet the full 2.0 release. Some new service providers have been added. There are now 4 different options for Advisory suppliers, 5 for Legal, 2 for KYC/AML , 1 for Marketing and 2 for Custody Services.
Polymath is focused on the global securities market. In a world where regulators are tightening up their grasp on the tokens and currencies that exist out there, more and more projects are in danger of being declared as “securities”. At the moment this is a potential death sentence for any crypto token out there as no crypto trading establishment possesses the licenses required to trade such financial instruments.
This is where Polymath platform joins in, providing tools for professionals, businesses and developers to own blockchain-based assets and investment opportunities that are classified as securities. The platform links several major participants of the crypto space:
Issuers, who can post bounties in POLY tokens to encourage legal delegates and developers to bid on providing services towards the issuance.
Investors seeking to purchase security tokens, who can pay a POLY fee to KYC providers for verification.
Developers, who can earn POLY tokens for creating STO contracts.
Legal delegates, who are able to earn POLY tokens by (i) proposing bids on security token issuances and (ii) being selected by the issuer to take responsibility for the issuance. Along with their bids, they can specify how long they are willing to lock up their bounty.
KYC providers, who pay a POLY fee to join the network and look for clients who want to be verified after paying a set fee.
The connecting link here, as you can see, is POLY, ETH-based ST20 token designed for processing security tokens. The above was a short overview of Polymath. Medium user Paradigm just recently released a post titled “Polymath: Detailed review on the project” which goes much deeper, offering an overview of Polymath’s technology, use cases, products, team, contributors, partnerships, clients, competitors, roadmap information and much more.
Overall, Polymath is straight up embracing the future where crypto projects will be classified as securities and is offering a solution to those “unfortunate” enough to get this tag attached to them. While security tokens will lose out on several good perks, including being tradable on any crypto exchange out there, they will gain SEC backing and a level of legitimacy that non-securities don’t have. This could eventually make these tokens more desirable investment targets to institutions and smart money, who are itching to have the crypto Wild West filtered a bit and cleared of bad, non-profitable projects. Ultimately, projects like Polymath will be at the forefront of this action and could, as a result of that, experience some very positive price movements in the future.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com