The cryptocurrency market had exploded in the current year. It saw a mass-scale acceptance and is believed to possess the potential to overtake fiat currencies one day. However, there are plenty of hurdles for cryptocurrencies to become a mode of payment. One of the major problems faced by cryptocurrencies is in terms of regulation. Cryptocurrencies and the blockchain is a novel innovation. It has yet to be categorized by governments and regulators. This pose a problem because the complex nature of the technologies prevents it from being regulated by governments and without regulation, there is little to no chance of them becoming an established mode of payment. The polymath network tries to tackle this problem in its own unique way.
What is Polymath?
Polymath, in simple terms, is a network much similar to Ethereum’s. It is a security token platform founded in 2017. Cryptocurrencies are funded through Initial coin Offerings (ICOs) but ICOs have been under fire from regulators. Reputed platforms like Ripple have suffered under the hands of the US Securities and Exchange Commission because of the complexity and confusion related to ICOs and the nature of the tokens put on sale. So, instead of ICOs Polymath provides Security Token Offerings (STOs). STOs, unlike ICOs, offer a stake or equity in the company which is an established model with a set regulatory framework.
Polymath is built on Ethereum’s blockchain and it enables users to create their own Security Tokens. The tokens employ Polymaths ST-20 or ERC1400 standard. Users can also embed the required regulatory frameworks in their security tokens to ensure the trade and sale is restricted to verified participants. Polymath has a focus on Know Your Customer, anti-money laundering and other laws and regulations to ensure the security tokens are created and traded within the purview of the law.
POLY future outlook
Polymath has been a successful project. The development team has been working on a similarly regulated blockchain targeted at institutions known as Polymesh. The Polymesh mainnet has been announced to go live in the next month. The launch and success of the Polymesh mainnet can boost the value of Polymath.
At the time of writing, the POLY token was operating at a price level of $0.58. The cryptocurrency has been moving downhill after a brief price rally. However, POLY moved to be relatively stable in the daily timeframe. According to the estimates of Wallet Investor, the cryptocurrency is expected to be standing at a price of $0.96 in a year’s time while reaching towards $2.15 in five years.