With the rise of cryptocurrencies has come a new era of regulation for the new digital assets. The SEC has been keen on establishing a set of rules for cryptocurrencies but is yet to settle on something concrete. Polymath network (POLY) has approached this stumble as an opportunity by creating a platform that is much more flexible on the issuance of security tokens. This network links the whole ecosystem behind the launching of an IPO using its smart contracts and POLY tokens as an incentive for participation. The token is currently among the top 100 cryptos in market cap after gaining a solid 28% in its price within the last 24 hours.
Polymath Effect on Security Tokens
Polymath users will include investors, token issuers, KYC services, developers and of course the legal team to focus on the rules within different jurisdictions. If this dream becomes a reality the cryptocurrency arena will see security tokens been born with ease as opposed to the current situation with the SEC. Currently there is a proposal that ICO’s launching as utility tokens have to be fully functional or comply with the same rules as Reg-D securities according to US laws.
Eventually the crypto regulations will be arrived at but the difficult of them all will be global compliance of the security tokens issues under the Polymath network. However, under its current infrastructure Polymath (POLY) is a good platform to link the private and public ICO’s by allowing for financial instruments protocols to be built within its network, an efficient way to escape jurisdiction under the same class as securities!
Polymath Flexibility Scope
The platform is an all rounded blockchain ecosystem embedded with more flexibility features than most blockchains right now. Legality of the operations is well guaranteed by the legal delegates whom it’s upon to do research considering the uncertain nature surrounding security tokens. Fine details such investors country’s regulations are some of the milestones Polymath seeks to achieve within its smart contracts in the near future.
Already the exploration of the various security token offerings is underway. Developers that have focused on the Polymath network are writing smart contracts for the STOs. Their rewards will be in the form of POLY tokens which means that the value attached to an STO can bring compensation a couple of times depending on the usage. In addition, Polymath will encode the rights that come along with security tokens for trading purposes approval in the near future.
POLY Market Review
The altcoin is trading slightly below the $1 mark having increased by 84% within the past week. Most analysts have attributed green movements to the larger bullish crypto market right now. However, Polymath (POLY) is among the coins that stand to gain from their fundamental value given that the market was introduced to this crypto only barely 4 months ago. Upbit & Bittrex coin markets share almost the same volume of POLY tokens traded against the BTC or ETH while other markets like IDEX have also secured a place in this race. POLY has been at 50% volatility within the month of April which is not unusual with digital currencies. Therefore, investors would rather have a safe haven in bonds and securities before going all in on cryptocurrencies although the likes of POLY might have a good cumulative return for HODlers.