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Polymath and its POLY token: A starter’s guide

5 (100%) 1 vote

Commonly referred to as the “Ethereum of security tokens”, Polymath is developing a standard for creating and distributing securities class cryptocurrencies. The Polymath platform allows businesses to register on their platform, require their desired level of KYC compliance, and allow or exclude various jurisdictions to ensure legal compliance.

Polymath and its POLY token: A starter's guide

What is Polymath

The Polymath project is a blockchain technology-based platform which seeks to onboard the asset management industry, a Total Addressable Market (TAM) worth more than $7 trillion. In order to ensure businesses maintain compliance with security offering requirements, Polymath requests information from businesses alongside KYC information from sale participants.

Some platforms have been burdened with differentiating between whitelisted participants between several token sales, but Polymath approaches this issue with a fairly novel solution, creating small exchange ecosystems for each token, with each requiring a whitelist for the related project. Here is a video from the Polymath team, explaining the platform briefly:

Polymath token price

Polymath (POLY) tokens were issued at a pre-sale price of roughly 40 cents to private investors. POLY tokens are currently being traded on several exchanges including KuCoin, Bittrex, and UpBit at an average price of $0.378 according to coinmarketcap. The price peaked at around $4 a short while after the token sale but has since corrected to below 50 cents on average.

Polymath ICO

The Polymath team decided against launching a public ICO (initial coin offering), they instead completed an airdrop to more than 20,000 users. They did offer a presale for early adopters at a price of about 40 cents per POLY token.

Polymath Initial Coin Offering Price

According to the GitHub repository, 12.5 million POLY tokens were set aside for private investors. The price of POLY for their presale was about 40 cents, according to cryptoslate. Polymath stated in a blog post that they would not be offering a public ICO. They want to separate themselves from the speculative bindings which chain most modern projects in the cryptocurrency market.

ICO Review

Polymath offered roughly 12.5 million POLY to private investors in their presale, but will not be offering a public ICO to people. Instead, the Polymath project airdropped POLY tokens to roughly 20,000 users at a value of 250 POLY each, maximum.

Polymath: How it works and its key features

The Polymath project works in similar fashion to the Ethereum Network, where POLY tokens are based on the ERC-20 token standard. Both use Proof-of-Work consensus mechanisms at the moment, but Ethereum has several protocol upgrade options available, such as Plasma, chain sharding, and several others.

POLY tokens can be used to create ST-20 tokens which act as security notes on the blockchain. Companies will be able to perform KYC and accreditation checks on investors before they participate in a Security Token Offering (STO) on the POLY Network.

The exchanges require people to be accredited for purchasing the tokens on a given exchange, this helps to ensure controlled secondary markets.

Polymath and its POLY token: A starter's guide

Polymath token: Use and utilities

The POLY token can be used to create and trade ST-20 standard tokens on the Polymath platform. These tokens are similar to colored coins and designed to be used for creating and trading security tokens. A demo of the Polymath platform is available here.

The following information is collected to create an ST-20 token:

  • Legal Name
  • Legal Entity Type
  • Type of Security
  • Project Description
  • Logo
  • Token characteristics
    • Voting Rights
    • Dividend
    • Dividend Frequency
    • Corporate Governance
    • Governance Integration Partner
    • Additional Features
  • Token allocation
    • Tokens to Create
    • Percentage of Tokens Held by Company
    • Percentage of Company Equity Distributed With Tokens
    • Price per Token in USD
  • Legal details
    • Issuing Jurisdiction
    • Offering Security To
    • Investors Must be Accredited
    • Investor KYC Needed
    • KYC Integration Partner
    • Tokens Freely Tradable
  • Contact details
    • Contact Name
    • Position at Company
    • Contact Phone Number
    • Contact Email
    • Permit Contact from Polymath

Polymath: Platform and technology

The Polymath platform is working to develop an onboarding ramp to the blockchain technology for traditional assets and securities. Much like the internet redefined communication and exchange of assets, blockchain is poised to change the face of asset management companies, an area which Polymath has specialized.

Polymath: Team and founders

The Polymath team is studded with famous names in crypto and in general. The CEO, Trevor Koverko, was an NHL draft pick for the NY Rangers and has led several Silicon Valley startups to success. Other notable team members and advisors include Erik Voorhees and Patrick Byrne from Overstock, which is planning to launch a regulated crypto exchange in the coming months.

Polymath: Wallets

POLY tokens can be held in any ERC-20 compliant wallet, such as MyEtherWallet, MetaMask, and many blockchain hardware wallets such as Trezor or Nano. If a token holder sends their POLY tokens to a wallet which does not support ERC-20 tokens, but they hold the private key to the wallet, they can export the tokens to a compliant wallet (e.g. blockchain info does not support ERC-20.)

Polymath: Can you mine Polymath?

POLY tokens cannot be mined. Tokens were airdropped to users earlier in 2018. Roughly 20,000 individuals received up to 250 tokens. 12.5 million were sold to private investors in the presale, and the rest have been reserved or allocated for business operations and vested for the team and founder use.

Polymath: Roadmap

Polymath has decided against publishing a specific roadmap in order to pivot quickly if they need to. A comment by Graeme Moore was posted to Reddit approximately one month from this writing by u/breezeattack:

“We don’t have a detailed Polymath roadmap at this stage. We want to remain nimble and able to pivot on a dime if anything changes. Our next milestone/goal is issuing our first securities token, which we are looking to do in the first half of 2018.” – Graeme Moore

Polymath: Community

Twitter: The Polymath team uses Twitter to issue instant notifications and updates to their community of 21.4 thousand Twitter followers. Short snippets of blog posts and links to the full posts can be viewed via the team’s regular posts here.

Reddit: Reddit is a forum which Polymath uses to disseminate updates from their Medium blog, communicate important or lengthy updates to their community, and drive the generative conversation with the crypto community.

Telegram: Polymath has one of the largest Telegram communities in the world, with more than 45,000 members in depth. Polymath provides, forward-looking statements, regular updates and maintains an active community in this channel which forms the backbone of their public communications.

Medium: Blogs from the team are regularly posted to keep the community up to date with events, project milestones, and other key points of information.

Bitcointalk: Polymath team members posted a standard Announcement ( [ANN] ) thread here to educate the community about the project initially and receive questions and other communications from the diverse community on the platform.

Coinmarketcap: Users can view the average value of POLY tokens across multiple exchanges, the daily volume of POLY tokens changing hands, and which exchanges are the most active for this community here.

Polymath: How to buy Polymath

POLY tokens are offered across several exchanges. The most active places to purchase POLY tokens are KuCoin, Bittrex, and UpBit. Users can also approach network participants to purchase tokens directly. The initial airdrop has ended, and at this time, the team has no intention of offering another.

Polymath: Review

Polymath has targeted a massive addressable market, allowing for an enormous growth potential. The market which Polymath has chosen is overflowing with entrenched competition, but much of their competition is inefficient. If their competition fails to adapt to the changing landscape, Polymath stands poised to overtake them.

Polymath strengths:

  • Massive addressable market (over $7 trillion).
  • Heavyweight team with substantial experience in the cryptocurrency market and asset management.
  • Agile business model.
  • No public ICO, airdropped tokens for even distribution.
  • Substantial ability to grow within their niche.
  • Regulatory compliance.
  • Potential to help form a stable regulatory environment for crypto without stifling innovative potential.

Polymath Weaknesses

  • Massive competition from heavily entrenched institutions.
  • Majority of tokens are held in reserve or by team members.
  • Substantial barriers to entry in the target market.
  • ST-20 tokens may allow new businesses to offer STOs, but the process is likely to be expensive and time-consuming.

Polymath: Final thoughts

Polymath is an ambitious startup with a diverse and skilled team which stands at the brink of redefining a multi-trillion dollar industry, but they have fierce competition and regulatory struggles ahead. If Polymath succeeds in lowering the barriers to entry for asset management, the project can benefit average individuals as well. Currently only the wealthy can participate in wealth management activities.

Comments

  • Victor
    April 27, 2018

    Unfortunately, this article is full of errors:
    “pre-sale price of roughly $0.40 cents”

    That should be “40 cents” or “$0.40”. Unfortunately, this is a common money formatting error. It actually makes it look like the value is less than 1 cent.

    “they instead completed an airdrop to more than 20,000 users”. The airdrop was for 250 tokens to each address that successfully went through KYC. A total of 9,999,750 tokens were distributed through airdrop (some via paper at events). That’s 39,999 ETH addresses.

    “Polymath stated in their roadmap that they intend to create small exchanges which users can sell their tokens on for instant liquidity.”

    What roadmap? Admins on their telegram group repeatedly state there is no roadmap. They also state they are not creating an exchange. Rather they are creating a protocol that may be used on multiple exchanges [created by others].

    “The exchanges require people to be accredited for purchasing the tokens on a given exchange”

    The protocol provides functionality to check accreditation and KYC. Those are not necessarily required but are specified according to the requirements of the particular issue.

    “If a token holder sends their POLY tokens to a wallet which does not support ERC-20 tokens, but they hold the private key to the wallet, they can export the tokens to a compliant wallet (e.g. blockchain info does not support ERC-20.)”

    The tokens are stored on the blockchain. It is not the tokens that are exported but the private key used to access them that is exported to a wallet that can process tokens. Note that this implies control of the private key, which is not the case for exchange wallets.

    “Roughly 20,000 individuals received up to 250 tokens.”

    Nearly 40,000 individuals received exactly 250 tokens.

    “12.5 million were sold to private investors in the presale, and the rest have been reserved or allocated for business operations and vested for the team and founder use.”

    230 million were sold to private investors. In addition, some investors received bonus tokens. A list of all ETH addresses receiving the token with the amount of distribution to each is available on Polymath’s github. Bonus tokens will be distributed at 1 year, 2 year, and 3 year anniversaries. Additionally, advisors will receive tokens on day 209 after initial distribution (also available on the Polymath github).

    “community of 21.4 Twitter followers”
    How can you have a fractional number of followers? Is there a unit missing there, like thousand?

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