There is no doubt that the ICO boom in 2017, and somehow 2018 left an unpleasant experience with many people in the space. Regrettably, many people lost their investments to business ideas that didn’t work, and of course, malicious players who vanished with investors funds.
Somehow, people have lost faith in the whole process with others shifting focus to other fundraising and tokenization mechanisms like Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs). But the later seems to catch on with actors in the industry, albeit there are the so-called asset-back and regulatory framework.
Security Tokens are those backed by a physical asset like gold, bonds, stocks and even shares of a firm. They are heavily regulated by the state, which gives some people a false sense of security in terms of transparency and guarantees.
Polymath (POLY) is a worldwide platform where you can issue and invest in securities tokens. The standard for Blockchain security tokens strives to combine the necessary regulative specifications in Smart Contracts and adhere to regulations.
POLY clarifies the statutory method of designing and trading security tokens. It sets the latest token standard called ST20 and ensures acquiescence by whitelisting approved investors and their Ether wallet addresses.
The POLY token, which is the native utility currency, is employed as payments in the ecosystem, that aids exchanges between issuers, developers, investors and service providers. They deliver a straightforward means to build, issue, and maintain digital securities on the Blockchain.
According to Trevor Koverko, co-founder at Polymath, the idea is to make it easy to unlock the Blockchain to tokenize and trade traditional and new classes of assets. It is dramatically lessening the restrictions, so providing security tokens to issuers will become smooth.
The project has five cardinal principles to make issuing of assets like stocks, commodities and bond on the Blockchain a reality. These include Efficiency, Transparency, Automated Compliance, Liquidity and New Assets Classes.
To begin with, Polymath is built to eliminate legacy third parties and adjusts methods to defeat overhead, administrative processes and transfer time. Through transparency, there is a means to protect investors with a comprehensive record of ownership on-chain at any period.
With the use of Smart Contracts, regulations such as buy lockups, sell lockups and limit on non-accredited investors are easily implemented irrespective of the jurisdiction. Additionally, Polymath has a window to provide access to investors worldwide through their exchange partners and the application of hyper-fractional ownership to divide security token in a manner non-existing in the traditional domain.
More excitingly, there exists an opportunity to raise capital from an enlarged provision of investors. These are innovative financial instruments devised to engage the advantages of digital securities.
How Polymath Work?
Polymath is leveraging the POLY token to drive their network with an incentivize package in place for developers and solicitors to cooperate and receive POLY as the remuneration. Assets issuers and investors on the platform pay gas fees with POLY to maintain the network and make it work seamlessly.
Polymath has already prepared a template which those issuing tokens can use to create their security token swiftly and efficiently by using Smart Contracts. For those who are interested in trying the system can go here to issue a security token.
The template has various questions about fundamental company information. These include the type of investors needed, the country of investors, should investors be accredited and many other things.
The Security Token Standard
Polymath is pioneering the ERC-1400 that was produced out of the necessity for compatibility in how to build, issue, trade, and manage security tokens. The new design is what is powering security token issuance without going through burdensome processes.
ERC-1400 connects current and existing models intending to create a consolidated framework for all security tokens. It is built on the ST20 protocol as an adaptable collection of standards for Core compliance components; Document handling and notification; Security token controls and permissions including delegation and forced token transfers; Partial fungibility – improving transparency for investors of their ownership rights.
Learn More About Polymath
To learn more about Polymath, join their various communities on the following platforms: Twitter