While the securities token market is currently very small, Polymath aims to flip that statistic on its head, making securities tokens more than 10x the size of the app token market. Security tokens, which make up a miniscule portion of cryptocurrency market cap, are similar to traditional assets like stocks or bonds, which are typically regulated. What is Polymath?īitcoin, Ethereum and most cryptocurrencies are application or utility tokens on unregulated, decentralized networks. Let’s take a deeper look and see if Polymath really will be good for cryptocurrencies, or if there’s a fatal flaw in the plan to created a securities blockchain. Companies get easy access to capital, there’s increased transparency, no need for onerous regulations and paperwork, increased liquidity, greater visibility, and an incentive to create financial products. And they’ll do so while also providing incentives to bring new financial products to market on the blockchain, while also keeping regulators happy and at bay.Īs an additional security measure, only verified buyers will be able to purchase or trade POLY coins.

It was developed to help issue securities tokens in a safe and blockchain regulated manner. Polymath is looking to be the cure to the ICO sickness.

Possibly worst of all, they threaten to bring more scrutiny to cryptocurrencies from government agencies and regulators. Why You should consider issuing a security token. securities laws in one way or another, and while they might not be regulated now, if they do become regulated this could pose a definite long-term risk. Many of the current ICOs are in violation of U.S. There are also the legal ramifications to consider. Let’s be honest, with roughly half of all the 2017 ICOs already failures, this is a pretty risky space. While early investors in new blockchain projects have the opportunity to see their investments increase by 100% or even 10,000%, they have an equal opportunity to see their investments go to $0 when the project dies, or even worse the developers simply disappear with the ICO funds.

ICOs have become both incredibly attractive and incredibly risky.

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