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Polymath Beginners’ Guide

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Today, we are going to talk about one of the most talked-about cryptocurrencies of 2018, Polymath. Polymath has introduced a solution to one of the most complicated problems in crypto space, the regulation conundrum of ICOs.

What Problem is Polymath Tackling?

2017 was filled with a lot of Initial Coin Offerings (ICOs). An ICO is an unregulated practice in which crypto companies raise capital for their cryptocurrency. These ICOs raised millions of dollars and were seen as a means of a scam by many. In fact, a lot of ICOs were later proved to be scams too, costing the public heavy losses.

SEC’s chairman, Ms.Warren, pointed out that no company registered their ICOs in 2017 with SEC, and these ICOs have raised more than $4 Billion that year. She further explained that this trend has continued in 2018 too.

SEC is now pushing to regulate ICOs so that they can be treated like public offerings. A public offering is an activity in which a company raises funds by registering with SEC and is hence regulated. Unlike ICOs, public offerings have to follow a lot of laws. SEC’s stance has confirmed the inevitability of crypto tokens to be registered as securities.

Regulating ICOs is not necessarily a bad thing. It can bring a lot of positives as regulations will offer people protection from frauds and scams. Moreover, ICOs are not able to accept money from US citizens which can be changed with SEC’s registration.

How Polymath Solves the Conundrum?

The standard token used in ICOs is ERC-20. Polymath aims to develop Security Token Offerings (STOs). Companies in cryptocurrency will have to use Polymath’s smart contract known as ST-20 to raise funds. This smart contract will follow all the legal rules of SEC. So how does Polymath work?

Firstly we have an issuer. An issuer is any company who has to issue security tokens through STOs. The issuer has to maintain contact with three important entities. These are legal delegates, developers and KYC (Know Your Customer), providers. The issuer will provide information related to STOs to these entities and wait for them. The legal delegates will help tackle legal complications. Developers will aid in the development of smart contracts. KYC Providers helps in the verification of the potential clients as well as the risks that they may pose to the issuer.  

After passing checks and getting confirmation from legal delegates, software developers and KYC providers, a smart contract will be launched and common buyers can then easily purchase security tokens from the issuer.

However, unlike ICOs, not every random person is able to buy a token. Buyers have to first contact the KYC provider and verify their identity. After verification, buyers will be provided with a wallet that runs on an ST-20 mechanism. This wallet will be connected to KYC providers. Moreover, the buyer can only sell and buy tokens from other buyers that also have an ST-20 wallet.

An issuer’s dealings with developers, legal delegates and KYC providers may result in fees. This fee can only be paid through Polymath’s token, Poly. However, any fee generated through the transaction between a buyer with an issuer, KYC provider or with any other buyer can be paid with both Poly and Ethereum. We can deal with only two tokens because they have been programmed in an ST-20 contract.

Market Statistics

Currently, Polymath’s circulating supply or the numbers of Poly tokens that are currently issued are 239 million. However, Polymath total supply is 1 billion which means there are more than 700 million Poly tokens that will be ultimately issued in future. Market capitalization or the money that is currently being invested in Polymath is 194 million. It is currently a top 100 cryptocurrency out of 1500 cryptocurrencies with respect to market capitalization. You can buy and sell Polymath from 3 or 4 cryptocurrency exchanges but the most dependable exchange is Kucoin which is responsible for 90% of Polymath’s daily trading.

Conclusion

Polymath’s biggest rival is not any other cryptocurrency but it is the presence of the standard method of a public offering’s registration with SEC. Polymath has partnered itself with some pretty big names to reform the ICOs registration and we think its team and partners possess the necessary skill and experience to reshape the world of the public offering.  

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