The Polymath Network and 2019’s Security Token Offerings Trend
Q3 of 2018 saw a higher number of STOs (Security Token Offerings) than ever before. Currently, there are over 60% STOs that are either upcoming or are already active. This shift from ICOs to the new STO trend is a result of the recent dip of the crypto market that has been coupled with softened demand from retail investors for crypto projects and solutions. Moreover, firms intending to raise capital are realizing that investor interests are now more focussed towards security tokens. Previously, their attention was on utility tokens. Utility tokens give you access to a token’s network and can be used to pay for platform or project-specific services or features. Security tokens, on the other hand, provide an equity stake or claim on the company – something that has made investor’s shift their attention to STOs.
What is Polymath?
Polymath is a decentralized network that helps companies and businesses overcome the hurdles posed by different regulatory requirements while they release their tokens through STOs. Similar to how Ethereum made ICOs accessible to everyone, Polymath intends to bridge the gap between blockchain technology and the financial world. It uses the ST-20 token standard to ensure compliance with government regulations. It focuses more on KYC, AML, and any other legalese to ensure compliance with securities laws. These are some of the reasons why the Polymath Token (POLY) has appreciated considerably on crypto market charts recently.
Over $4 million worth of POLY is traded on a daily basis. Polymath’s ICO was the first ICO that was fully compliant and registered with the SEC (the Securities and Exchange Commission). Due to this fact, it successfully raised over $59 million in a private token to accredited investors. The way it works is that a token created through Polymath can verify who can buy and sell the token via a smart contract. Therefore, only authorized investors can hold the token. This has enabled Polymath to help the SEC overcome issues related to investor fraud, FUD investments, and other volatility-based investments (as opposed to benefits or utility-based investments) that harm and do not help common investors. What Polymath has essentially done is set the groundwork for everyone else in the crypto market to follow.
Why Polymath Will be Important in 2019
Despite the fact the Polymath is still under development, its platform already features a decent range of features and functionalities. The platform will need to be developed and improved further, but the Canadian team behind it believe that Polymath will play an important role in 2019 in helping businesses overcome challenges in the crypto space. Some of the advantages of Polymath include:
- Allowing companies to control the issuance of their capital through code.
- Helping businesses attract new investors who are interested in switching to digital currencies.
- Enabling trading to take place 24/7 regardless of locality.
- Eliminating intermediaries and financial blocks which can impede or make capital placement expensive.
The idea behind Polymath is unique, exciting, and ahead of the curve – it is the next logical step in crypto’s progression from innovative new idea to technology that is embraced by the market. The biggest challenge is in the realm of adoption and implementation. While Polymath still needs time to grow and develop in concert with developments across the crypto space as a whole, there is no doubt that Polymath has the potential to become 2019’s crypto market flagship. It will be exciting to see what new innovations are built on this platform and how successful it will be in opening the doors for institutional investors to the crypto market. Only time will tell!