Top Crypto Fundamental Pick: Polymath (POLY)
Synopsis - 01-06-2018,13:10
Over the past two years, ICO’s have raised more than 4 billion dollars in revenue, yet in the period before 2018, none of them were registered with the SEC (Securities and Exchange Commission). If certain crypto assets are determined securities, without abiding by the traditional framework, there could be grave consequences. This hot topic is the problem Polymath is determined to solve. In order to achieve this, they propose a platform in which to create security tokens where all necessary regulatory requirements are accounted for. This new framework has been coined the security token standard: ST-20 and is comparable to Ethereum’s ERC-20, whilst focusing on securities and abiding by the SEC regulations. Allowing for the simplification of the legal process of creating and selling security tokens in compliance with government regulation. This merging of emerging blockchain technology and traditional regulations has many individuals excited, as it will allow for institutional figures to feel more secure when investing large sums of money in ICO’s in the future. Arguably a factor which is currently holding blockchain technology back from mainstream adoption. With little competition in the blockchain market at current, Polymath’s platform could truly change the way securities are created and traded in the future, for this reason, the project appears to have great potential if pulled off professionally.
Catalysts
● CEO Trevor Koverko has long-term experience in the cryptocurrency market, previously working for reputable companies such as ShaftShift and Luminex
● 30 core team members, with wide-ranging experience in blockchain and traditional finance roles, working for companies such as LedgerX, Jaxx, Overstock, and Deloitte
● First mover advantage, with little comparable competition currently
● Collaboration with tZERO advisors who are also building a securities exchange, providing liquidity to the market
● Partnerships with KYC facilitators IdentityMind and BnkToTheFuture, alongside SelfKey, a digital identity verifier
Risk Factors
● Not all team members are fully dedicated to the project, as their time is split between multiple projects
● tZERO is also building a securities exchange but is still in its ICO stage
● The main competitor at current is the SEC itself, although their traditional procedure is often long and rigorous
Events
11th June: World Blockchain Forum New York
A two-day conference delving into the innovative possibilities of blockchain and disruptive technologies.
31st August: First Security Token Launch
Polymath will be listing their first security token by the end of August 2018.
Conclusion
As with any emerging technology, blockchain has largely outpaced regulation from those who seek to implement it. Although this may allow for constant innovation within the sector, it often holds institutional investors back from supporting projects they believe in. Polymath may prove a safe haven for these more cautious investors, by providing a platform where security tokens can be easily created that meet all necessary regulatory requirements with ease. As a result, individuals can feel comfortable in investing large amounts of money within the sector, without facing a backlash from intervening regulators in the future. Consequently, many individuals see great potential in Polymath, and with little competition at current in the blockchain marketplace, the project could truly change the way securities are created in years to come. Talks of impending regulation are only going to increase whilst the blockchain space matures, and with such talks, the popularity of the project will likely grow, for this reason, Polymath could be an excellent long-term investment.
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