For example, a citizen of country A may not be able to legally hold a security issued by a company in country B. Why only “some” tokens? The white paper outlines that not all investors will qualify for all tokens. Once an investor is verified, their Ethereum address will be permanently linked to their real ID, and will then be eligible for purchasing some security tokens. A potential investor will need to pay a fee in POLY tokens in order to undergo this verification.
Polymath project verification#
According to the white paper, KYC verification will be done by various third-party partner groups. For instance, all buyers that wish to purchase a security token must first pass KYC verification. In order to comply with pre-existing laws relating to securities trading, a number of steps need to be taken. Their own POLY tokens, however, are defined by Polymath as being utility tokens as they are used to pay for various fees and services. Polymath, on the other hand, wants to implicitly clarify that tokens created through their STO protocol are absolutely, undoubtedly securities by every definition and legal standard. Many projects have instead taken great care to strongly imply that their currency is a utility token, and their initial sales are often called “token generating events” or other such alternative phrasing. These days a major debate that is ongoing within the cryptocurrency world is what types of coins and tokens qualify as securities, and which do not? Many new projects have been very careful in their wording to avoid using words like “ICO”, “investment”, and so on. It’s currently sitting within the top 100 cryptocurrencies that are listed on. With the circulating supply at just under 240 million, the project has a market cap of just around $240 million. Today, POLY tokens are trading for just around one dollar each. The project has a total of 1 billion tokens which were initially minted and no additional tokens will exist in the future. The platform uses its own ERC-20 token, POLY, that is used to pay for various fees on the network, and in some cases can be used to purchase securities directly. The goal of the project is to eventually have an ecosystem and protocol where verified investors (more on that later) can purchase and trade tokenized securities that are equivalent to other types of investments like stocks, equity, and venture capital funding. They plan to do this through what they call an STO, meaning “security token offering”. Polymath is a cryptocurrency project that wants to offer a method for traditional investment assets to be tokenized and tradable in a manner somewhat similar to other blockchain assets.