Polymath (POLY) is breaking onto the crypto scene with a bang. This coin has only been trading since the beginning of the month, and it has nearly doubled its price tag. In the past week, it has gained 84% – and has consistently been found in the top gainers for currencies worth more than $100 million.
Blog Post: The World’s First Ever Security Token Conference is Sold Outhttps://t.co/pjnNFrwYXj
— Polymath (@PolymathNetwork) February 15, 2018
So, why are investors pouring into this digital currency?
Polymath (POLY) is addressing a major issue in the crypto space
That issue, of course, is government regulation. Even a whiff of a rumor when it comes to government crackdowns on cryptocurrency trading (China and South Korea come to mind) can drag the entire cryptocurrency market down by double digits. The industry is still new to most people, and we haven’t quite reached the stage where initial coin offerings (ICOs) are considered as launches of legitimate securities – like SEC-regulated public companies issue in initial public offerings (IPOs).
That’s what Polymath (POLY) is trying to resolve. You see, there are two types of tokens in the cryptocurrency space: utility/app tokens (like Bitcoin and Ripple) and securities tokens. The simple difference is that app tokens give you access to an unregulated decentralized blockchain, whereas security tokens are like traditional financial instruments that need to be regulated.
The Polymath token will be the link between the SEC and blockchain
With the Polymath network, organizations and companies can launch tokens (called ST20 tokens) that are already automatically legally compliant security tokens. It is like the Ethereum for the security token network – an easy way to launch new coins on an existing network (but this makes them regulated).
Polymath believes that the amount of security tokens will soon surpass how many app tokens are out there, as more and more blockchain-based ventures want to make their tokens legally legitimate investments.
This project is a necessary step for the crypto sector to take, and the POLY coin looks like its poised for massive price growth as the platform gains more awareness – and eventually launches.
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.