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Cryptocurrency Security Trading Roars to Life with Polymath (POLY)

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The recent explosion in initial coin offerings has shown a fairly specific trend. Most of the new coins are considered ‘application’ tokens, or currencies designed for use within an application created by the issuer. Given the genesis of blockchain technology, there’s nothing surprising about this. The first adopters of cryptocurrency were technologically minded and focused on what the new system could do. As blockchain development gained momentum and value, the financial world started to take notice. High on their list of potential uses was the creation of ‘security’ tokens. This would bring the world of company shares to the blockchain, and provide all the advantages of a decentralized, distributed ledger.

Polymath’s software development has focused on bringing this capacity directly to issuers. Their Polymath platform will allow individuals and companies to easily create a security token to serve as a digital share of their enterprise. The ST20 standard for new tokens is designed to be quick, easy and above all else, verifiable. In order to create the decentralized securities exchange that they envision, Polymath must ensure that they apply the same regulations that govern traditional securities.

The Difference Between ‘Application’ and ‘Security’ Tokens

Most savvy crypto-investors are already well aware of the difference between a coin and a token. Beyond that, there is also the difference between an ‘application’ token and a ‘security’ token. The vast majority currently available on the market are application tokens. The Ethereum ERC20 standard is still the code base of choice for these tokens, which are created to serve a purpose within the software ecosystem of the issuer. Polymath’s POLY token is, itself, an ERC20 token that uses smart contracts to help verify identity and as a common currency within the system for security exchanging.

In contrast, a security token does not serve any function on its own. Rather, it is a form of ‘digital share’, representing ownership of a portion of the issuer’s company. This can include many of the features of traditional stocks, including dividends and voting rights. The ST20 Polymath platform standard allows the creation of security tokens for internal use. The issuing entity can then sell their currency to build initial capital. Those security tokens can then be traded on the Polymath platform, using POLY as a common value currency.

“Know Your Customer” Identity Verification

One of the most critical components of the Polymath system is the strict adherence to regulations. Polymath intends to verify the identification of all users, as well as their required certifications. They will do this using the native smart contract capacity of the POLY token. This will help ensure that anyone purchasing securities on their exchange is legally able to do so. This is known as a KYC or Know Your Customer requirement, and is expected of traditional brokerages. Polymath believes that these types of regulations will eventually be enforced on the cryptocurrency market.

It also adds an additional level of revenue generation within the platform. KYC providers will serve an important purpose, running the necessary checks to ensure valid identities. Users will be able to choose from all the KYC providers on the network so that they can choose the best option for them – including price and accreditation in their country of residence. The same is true of issuers, who will use a legal delegation pool to find someone to manage their smart contract requirements. These delegates can enforce certain restrictions on the issuance of tokens – including time-locked freezes and coin burns.

Polymath as a New Type of Securities Exchange

Traditional security offerings are often expensive and time-consuming, requiring multiple layers of middlemen and legal teams. It can take years to fully realize an initial public offering. There are also multiple levels of investor, requiring different levels of accreditation to invest. This has partially been responsible for the prevention of United States citizens from participating in many ICOs. Polymath intends to create a platform where this can be done more easily, and much more quickly.

All of the same rules and regulations would be in place, particularly in regards to identity. The KYC and Legal delegate system would remove much of this burden. The ST20 token is also designed from the ground up to be simple to implement. Once the new security token is available on the Polymath platform, it can easily be traded on the secondary securities market by anyone holding POLY tokens.

Polymath’s Potential

Since POLY’s release less than a month ago, the cryptocurrency has already more than doubled in value. Their extremely low market cap of only $364 million leaves them tremendous space for growth from their current per coin price of $1.5. As they begin implementing their securities exchange platform and bringing new security tokens on board, their price should adjust accordingly. The project is ambitious, but the technology is available – it is just a matter of implementing it.

We will be updating our subscribers as soon as we know more. For the latest updates on POLY, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of coinmarketcap.com

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Reasons Why You Are Much Safer When Crypto Trading on Dexes

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While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.

During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.

Here are some reasons why you might want to consider doing the same.

1. True ownership of your coins

The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges

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Crypto Billionaire Predicts Massive Price Growth by 2021

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Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.

Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.

He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.

However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…

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Altcoins

TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level

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Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world.  Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon.  This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs.  One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos.  TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.

Problems with Centralized Casinos

The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model.  And online casinos are no different.  It still needs to be said that centralized casinos have proven that there is a great demand for online gambling.  The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative.  But industries are continually evolving and this one is no different.

A few of the problems facing centralized casinos include the following:

  • Little to no transparency
  • Consumer lack of confidence
  • Privacy concerns
  • 48-72 hour wait time for withdrawals

These are four monumental issues that need to be addressed quickly given the global growth of the market.  Casinos need to…

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