Polymath crypto improves the blockchain by providing a means to invest in and trade securities in the DeFi realm. Some might even argue that the crypto sphere will not thrive without Polymath’s services, but that is for you to decide!
An introduction to Polymath
Polymath is an ERC-20 token established to oversee the creation, management, and issuance of securities. If you are not yet up to date with your financial terms, securities are financial assets that you can buy and sell.
These include bonds, stocks, preferred shares, ETFs, mutual funds, and bank deposits. Before Polymath, there was no way to exchange financial assets in the crypto sphere.
Crypto enthusiasts say DeFi is the future, and they are not wrong. However, it makes sense for the financial market to have a place in decentralized finance. And if you can transfer your financial assets to a digital finance project, it further proves that you don’t need a third party to oversee your wealth.
All of this explains Polymesh, a sub-division of Polymath. Polymath is the idea, and Polymesh is the executor.
Back to Polymath – it creates opportunities for developers with security tokens they want to bring to life.
That’s not all – if a security token already exists on another blockchain, it is possible to transfer those assets to the Polymesh network to take advantage of its advanced features.
All of this is safe because there are validators and protocols to oversee the identity of every user. Issuers and creators of security tokens must also undergo a background check to confirm their identity.
This means Polymath works with KYC providers and identity authenticators to protect the interest of every investor.
To clarify: there is a difference between investing in cryptocurrency and investing in security tokens. They are not the same – the provisions of the SEC will not protect you if you lose your funds because POLY plummets in value.
However, if you invest in one of the financial securities turned security tokens, you have the protection of the SEC.
Plenty of focus is on creators of security tokens from financial securities. If you have the idea or the resources, you can use the Polymesh network and its software to bring your dream to life.
It has everything you need, including the security of the Ethereum blockchain. You will find that some of your duties are even easier.
For instance, the identity of every user must be known by providers of financial securities. Similarly, the users of your security tokens also need to know you. A perk Polymesh offers is verifying every important identity without overly disclosing personal information.
In other words, it does the background check on your behalf. It also ensures that your coin complies with the ERC1400 standards; you don’t have to do the work.
Polymath is a project that accommodates developers, creators of security tokens, and big and small investors. It offers what an ecosystem in decentralized finance truly entails.
What’s more, the project does not appeal to everyone, which is a good sign when considering cryptocurrency protocols to take seriously. In the real sense, a smaller and more dedicated community is better for developing a project.
In this case, crypto enthusiasts who love the financial markets may adore and benefit from the Polymath sphere.
Who founded Polymath?
Familiarizing yourself with the founders of a token of interest can help you improve your cryptocurrency portfolio. It helps you make better investment ideas – if the coin’s developers are not worth their salt, why would their project be any different?
So, without further ado, a look into the personal lives of the founders of Polymath is of the essence.
Polymath was birthed in 2017 by Trevor Koverko and Chris Housser. Chris Housser studied law at The University of Ontario and History at the University of Victoria. He was an infantry soldier in the Canadian forces in 2008, which should mean something.
Trevor Koverko, on the other hand, was a professional hockey player in Canada before a car accident paralyzed the left side of his body. He beat his critical condition and bounced back to serve the world something else – a network that allows you to consecutively become a shareholder and token holder.
What is Polymath? It is a cryptocurrency platform that creates and hosts securities. The idea of developing Polymath resulted from the search for a means to represent a private fund on the blockchain.
In turning that private fund into a security token, Polymath developers discovered that the conventional blockchain was not designed for such operations. This was a problem in the crypto world, and Polymath was the solution.
It was decided that instead of building a means to tokenize that private fund alone, why not develop a system that allows other developers to create tokens out of financial assets and securities?
Hence the birth of Polymesh.
What does Polymath offer the world?
Polymath offers the world Polymesh. Polymesh is the blockchain that allows developers to create tokens from financial securities and assets, including real estate, ETFs, equity, and debt.
However, the project takes things a step further in terms of development. The creation of security tokens can now be done by anyone, and they will enjoy the perks of blockchain technology in the process.
Speaking of which, Polymath is registered with the U.S Securities and Exchange Commission. The security tokens on Polymesh will therefore be under the umbrella of the SEC’s protection.
The SEC oversees the securities market to protect big and small investors. Perhaps this means Polymath means business.
This means the happenings of security tokens in the crypto sphere will be under the supervision of the SEC.
With Polymesh, the similarities between real-life and Web3.0 financial securities trading can be enhanced for ultimate satisfaction. Polymesh pretty much does the job for creators of these security tokens.
There are some protocols that you may be familiar with if you have done your homework on the financial market.
There are also some rules that every security token on the Ethereum blockchain must adopt – ERC1400; it works for smart contracts and combines the best things about new and existing standards to create Web3.0 security tokens.
So, you can trade securities securely on the blockchain.
Here is the catch – you cannot send and receive security tokens cross-chain. If the assets are not in the same category or jurisdiction and do not have the same identity, they can only be exchanged within their ecosystem.
This is a deviation from what the decentralized finance industry is all about. Usually, your wallet should be capable of sending and receiving any cryptocurrency, even though you may need to employ DEXs sometimes.
For those who don’t know, a DEX is a decentralized exchange medium, a peer-to-peer platform that you can use to swap any coin for another one of your choices.
Polymesh can, however, receive wrapped tokens, which is a way to bypass this restriction.
What are the native tokens for Polymath Protocol?
Of course, you must already know that Polymath has a sub-protocol, a distinct service it offers the crypto ecosystem. The project is significant enough to be considered another arm of Polymath.
As a result, this creates a need for a native token, especially for Polymesh. It is called POLYX, and anyone can have access to it.
On the other hand, Polymath has its native token, too – POLY. You can swap one POLYX for one POLY on a 1:1 scale. This is a limited offer, though; terms and conditions apply.
As you may have guessed, the tokens serve different purposes. You cannot use one POLYX to pay for something on the Polymath ecosystem; the same applies to using one POLY to facilitate a transaction on the Polymesh network.
POLY is the utility token. This means you use it when you need to pay for services like gas fees for buying and selling or creating and issuing tokens. You can also use the coins to pay for the network’s legal advice and custodial services.
There are only 1 billion POLY tokens, and each trades at twenty-five cents. This is not an investment advice, but from the history of other long-standing cryptocurrencies like Ethereum and Bitcoin, Polymath’s market cap and tokenomics point to a sustainable and reliable project.
It is also worth mentioning that POLY tokens are not existing merely as a means of exchange. That is a basic function every cryptocurrency must be capable of offering, and no network should exist for that function alone.
Bitcoin is the foremost cryptocurrency, so it is allowed to be only a storage of value and means of exchange. However, any upcoming crypto project must offer an additional function to the blockchain.
If it does not improve the crypto ecosystem, there is no chance of sustainability, and you will lose your investment.
It is safe to say that Polymath is valuable to the ecosystem; it provides an array of services that you must already be familiar with. So far, no other crypto project has arisen to be the competition, leaving Polymath as the sole blockchain that improves the creation of security tokens.
POLY is the utility token for the Polymath ecosystem. This is the coin you buy if you want to invest in the project. It is also what you hold to participate in transactions or use other services.
On the other hand, POLYX is the coin you must hold if you want to create and manage security tokens on the Polymesh network.
Is Polymath Crypto safe?
As mentioned earlier, Polymath is an ERC-20 token. This means it is hosted on the Ethereum blockchain, one of the safest spaces in the DeFi sphere.
To qualify as an ERC-20 token, the project must comply with the laid down protocols for verification or validation, among other things. For those who don’t know, ERC is an acronym for Ethereum Request for Comment, and it is the system that facilitates the workings of smart contracts and smart properties. It also guides the creation of tokens hosted on the blockchain.
You can never be too careful these days when dealing with decentralized finance. Many networks or projects promise investors the world, but when the dust dies, all that is left may be a rug pull.
One way to confirm that you are on the right track is to verify that a token you are interested in qualifies as an ERC-20 coin.
Of course, you will also have to investigate the developers; what is the team like, and are the members likely to pull a scam? For many, even if they are not choosing to invest in a token, using the network’s services puts your coins in their custody, and a rug pull can rip the unsuspecting investor off.
By now, you should already be somewhat familiar with Trevor and Chris, but the other members of the Polymath network are Pablo Ruiz and Robert Stratton. They are easy to find, which signifies a degree of safety.
The registration with the SEC should also mean something. However, if you invest in the tokens, the regulations will not protect you. A disclaimer in the Polymath whitepaper says the intention is to improve the exchange of securities tokens in the DeFi space.
They are working towards that goal, but things may not work out. This may be due to market conditions, technological advancements, and consumer preferences.
Investing in Polymath does not guarantee sure returns, but the project may be on the path to achieving its goal. After all, Polymesh was birthed only two years after the Polymath project took off.
All Polymath wants is to give you an opportunity to be a shareholder and a token holder at the same time. With Polymesh, you can create tokens to represent real-world or digital assets and set them up for trades and exchanges.