Polymath coin (POLY) – shares on the blockchain =

Polymath (POLY) is also called the Ethereum of security tokens (stock and bond tokens). Ethereum was a revolutionary invention at the time when it came out with ERC20 tokens where crypto projects could easily launch their own crypto token (utility token). Polymath can now revolutionize crypto by being the first to release ST-20 tokens, allowing companies to issue their own shares as tokens (security tokens). With this, a huge step can be taken from the “old” financial world to the new. This article will explain to you how Polymath wants to do this and what the enormous potential of this project is.

 

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  • What is Polymath (POLY)?
  • Features POLY
  • Team, partners and advisors
  • roadmap
  • Popularity Polymath
  • Criticism
  • Conclusion
  • Buy POLY directly

What is Polymath (POLY)?

Polymath wants to bring the crypto and stock market together by making it as simple as possible for companies to issue their shares as tokens, so-called ST20 tokens. You can think of an Apple that issues its shares as ST20 tokens.

Short explanation (English) in a few minutes:

The problem

The reason why it is now almost impossible to create security tokens is that the SEC (Securities and Exchange Commission) has many rules to be able to issue securities. They do this to protect inexperienced investors as much as possible and there are many inexperienced investors in the crypto world. But what exactly is the difference between a security token and the tokens as we know them today?

Difference between security tokens and utility tokens

The tokens as we know them today, for example Waltonchain, are utility tokens. These tokens give you access to a certain network, for example the Waltonchain network. You can see it as if Waltonchain has built its own small economy within its project. Here you can use all the benefits of this Walton economy, but you can only use the “native” token of this specific economy, the Walton token. Actually, it is comparable to the fact that you can only use the euro in the European economy (just replace Walton with Europe and the euro in the previous sentences). The euro is also a kind of utility token for Europe.

However, security tokens give the right to shares or a dividend claim of a company. For this reason, security tokens fall under the same regulations as securities and that is the reason why there are hardly any security tokens compared to utility tokens.

>> Read more about the differences between tokens in this article

Regulation Securities

In order for a company to issue security tokens, the government expects you to provide investors in your company with “financial and other material information about the securities being offered for public sale.” This is excellent regulation and it also aims to prevent deception, misrepresentation and other fraud. Considering that there are many scams around crypto and 46% of the ICOs held in 2017 have already failed, we can only applaud such rules.

The biggest disadvantage is that it is an extremely expensive and complicated process for companies to comply with these rules. While blockchain and platforms such as Ethereum make it incredibly easy to release utility tokens, this has hardly improved for security tokens. Polymath wants to change this.

Polymath’s security token platform

The security tokens that you can launch as a company via Polymath are called ST-20 tokens. To make it as easy as possible to create these, Polymath works with three layers: an application layer, a legal layer and a protocol layer.

 

 

Application layer

The application layer is the “top layer” and this is where it all happens. Here you will find the marketplace for all security tokens, here you can create the security tokens as a company and here you will find other Polymath services.

Legal layer

Everything about government regulations is arranged at the legal layer. This layer is essential to be able to issue security tokens within the law. This contains the template with which rules the ST-20 token must adhere to and the KYC (know your customer) rules are implemented.

Protocol layer

The “bottom” and most important layer is the protocol layer. This layer contains the protocol that ensures that the top two layers function properly and securely.

Polymath’s ST-20 Tokens

Currently, almost all exchanges refuse security tokens on their platform because of all the rules surrounding it. However, thanks to Polymath’s ST-20 tokens, this is no longer necessary, as the platform’s smart contracts automatically execute and track all these rules. Investors who do not comply with the rules cannot hold ST-20 tokens and tokens that do not comply with the rules are never eligible to become an ST-20 token. Below is a diagram to explain it properly.

 

The Token of Polymath – POLY

POLY serves the same function that Ether does for Ethereum. So, as you just learned, this is a utility token. You can use the token within the Polymath economy. The token can be used by different people:

  1. Legal delegates
    Legal delegates can earn POLY by being selected to release a new security token.
  2. Developers (programmers)
    Developers can earn POLY by creating smart contracts on the platform.
  3. Issuer (issuers)
    An issuer can pay POLY tokens to legal delegates and developers for their services.
  4. KYC Provider (KYC provider).
    KYC providers must pay POLY to be part of the network. After that, they can earn POLY by verifying investors.
  5. Buyers (investors)
    To become an investor in ST-20 tokens you need to be on the “whitelist”. You only get here if you meet the KYC. To comply with this, you must be approved by the KYC providers. They don’t do this for free though, so you can POLY pay them for their services.

 

Token Distribution

There are currently 240 million POLY in circulation. Of these, 230 million were sold during pre-sale and ICO and 10 million were given away for free via airdrop. How the rest of the POLY is put into circulation is shown in the diagram below. The team behind Polymath owns only 15% of the supply itself. This is a relatively low number, which is a good sign. In addition, they are only allowed to sell one third of their tokens after one year and the rest after three years. This means that they have an extra motivation to increase the value of the project and thus the tokens in the coming years.

 

Characteristics

Token symbol

POLY

Total number of tokens

1,000,000,000

Number of tokens in circulation

239,999,750

Price during ICO

$0.40

token type

ERC-20 (based on Ethereum)

Hard cap sales of tokens

No hard cap

Funds raised during ICO

$59 million

Issue

Days after ICO

Date

Number of Tokens

%

Distribution

0

January 31, 2018

240,000,000

24%

  • Presale 230,000,000
  • Airdrop 10,000,000

100

May 11, 2018

34,891,933

3.5%

  • 6.8% of the reserve supply

7 months

August 31, 2018

20,000,000

2%

  • Advisory offer

1 year

January 31, 2019

89,053,330

8.9%

  • 33% of the founder offering
    • 50,000,000
  • First bonus offer
    • 39,053,330

2 years

January 31, 2020

9,354,408

0.9%

  • Second bonus offer

3 years

January 31, 2021

128,475,604

12.8%

  • The rest of the Founder’s offering
    • 100,000,000
  • Third bonus offer
    • 283,475,604

4 years

January 31, 2022

478,224,725

47.8%

  • The rest of the reserve supply

 

Team, advisors and partners

According to their LinkedIn profile, the Polymath team consists of 30 people. The project is led by none other than Trevor Koverko. Trevor can be seen as a true Silicon Valley and crypto veteran. He seems to have a good sense of global trends and development. This is evident from the fact that he can successfully lead the investment company DAI, but especially from the fact that he invested heavily in Bitcoin when it was still $ 20 and in Ethereum when it first came into play. So he no longer has to do it for the money.

 

Name

Position

Experience

Trevor Koverko

Chief Executive Officer

Founder Dai and one of the first investors in Bitcoin and Ethereum

Chris Housser

Co Founder

Associate at Bennet Best Burn for 3 years. Juris Doctor (JD) in Law.

Tracy Leparulo

Chief Event Officer

Founder and CEO of Untraceable (5 years), marketing agency focused on blockchain. Co-founder of ETHWaterloo. Bsc in Marketing and Entrepreneurship.

Igor Dennisov

M&A and Strategic Partnerships

Investment Bankin Associate at BMO Capital Markets (2 years) and GMP Securities (1.5 years). BASc. in Engineering Science.

 

Advisors

Polymath has a very impressive group of advisors behind it. The most prominent names are Erik Voorhees and Patrick Byrne. Voorhees is a big name in the crypto world. He is founder of Coinapult and SatoshiDice, among others. His most recently founded company, which he still works for today, is ShapeShift. Patrick Byrne is the CEO of Overstock, a multi-billion dollar company. Other big names are David Johnston (founder Factom), Anthony Di Iorio (co-founder Ethereum) and Robby Dermody (co-founder Counterparty).

 

Partners

It is important for Polymath to find the right partners. They can really use the help, especially in the legal field. The legal delegates, KYC providers, and issuers will not come naturally. To make a (giant) leap in this, they have entered into partnerships with IdentityMind, SelfKey and BnkToTheFuture. Moreover, they have entered into a partnership with tZERO. This seemed like a major competitor at first, but by entering into a partnership, Polymath shows that the ambition to bring the old and new financial world together is more important to them than to become the largest in it.

In addition, Corl Finance Technologies, SeriesX and Ethereum Capital have indicated that they want to create security tokens on the Polymath platform.

roadmap

PolyMath’s roadmap is not clear. They have mentioned some steps they want to take to develop further, but there are no real deadlines. The only roadmap they have released consists of five phases. They have already completed the first two. These were the release of the white paper (1) and the provision of early advice (2). The next three stages are as follows.

  • 3

Phase 3

Integrate with leading projects to implement KYC (Know Your Customer) on the blockchain and in the ecosystem.

note

  • 4

Phase 4

Launch of the PolyMath Platform

note

  • 5

Phase 5

Announcing the first PolyMath-based securities tokens

note

Popularity and community

At Polymath they seem to understand how marketing in the crypto world works. Among other things, they did an airdrop where people received 250 POLY. This has given them a huge boost in brand awareness. As a result, the project has many followers on social media. This huge community can cause a lot of hype around the cryptocurrency.

Twitter

23k followers

Telegram

47k followers

Facebook

36k followers

Reddit

3.5k readers

Criticism

Currently, Polymath is mainly focused on developing a protocol for issuing tokens that are compliant with AML and KYC regulations. However, this does not mean that regulators will actually recognize security tokens as securities. As it stands, Polymath wants to become a stock exchange with “tokenized” securities. However, before they can have this status, they still have to go through a huge process with the SEC before it approves it. The Polymath team has not yet made any clear statements about this. It seems that the focus is first on becoming a sort of KYC & AML provider for ICOs. However, they have a lot of competition for this and they are certainly not the first project to do this. So before they can realize their big ambitions, they first have to sit down with the SEC. It is true that from the moment the SEC starts to embrace blockchain, Polymath will be the first to benefit from this.

Conclusion

The idea behind and the market for Polymath is huge. If successful, this project could represent another giant step for crypto. The utility token market has already exploded and if Polymath makes it possible and simple to get security tokens to the blockchain, the possibilities are endless. However, it may take some time before this is the case. This is not necessarily due to Polymath but to the SEC and the outdated regulations. At the moment, it is not yet clear to the SEC what to do with crypto. However, the talented team and impressive advisors behind Polymath can ensure that this all accelerates. If they manage to pull this off, the future looks very bright for Polymath.

How do I buy Polymath?

Buying Polymath on Binance is a piece of cake. With this explanation you will be the proud owner of POLY within a few steps.

  1. Sign up for free at Binance here
  2. Login to your account
    Please note: keep your username and password safe!
  3. Press Buy Crypto at the top left and choose Bank Deposit
  4. Fiat tab instead of Crypto and check that it ‘s on Euro
  5. Choose iDEAL if you want the money directly on your account and Bank Transfer (SEPA) if you also like it if it takes a few days before the money is on your account
  6. Wait until your euros have been deposited into the Binance account
  7. Click on Trading at the top and select Classic
  8. You are now on the trading section of Binance. Click on FIAT on the right and select EUR
  9. A number of coins can be traded on Binance for euros. But, most of them are traded against Bitcoin. Look up the trading pair BTC/EUR and buy Bitcoin with your euros.
  10. BTC tab and look up Polymath using its ticker POLY
  11. BTC/POLY trading pair . By clicking on it, you can buy Polymath
  12. Congratulations! You are in possession of your favorite cryptocurrency!

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