One thing we all like to do is speculate on the price of your favorite cryptocurrency. Today, we’ll have a look at Polymath, a global platform that’s focused on security tokens. The issuance, creation and distribution of security token offerings. Being one of the projects that has raised the biggest amount of money ever back in early 2018. There is even a new type of token standard (ST20) specifically designed for the Polymath platform. The project has gone through a whirlwind by investors and the industry as a whole. Where they are now and what we can expect in the upcoming years.
What is Polymath (POLY)
First of all, digging into Polymath raises an immediate red flag; there is no whitepaper to be found. Scrolling through their website, a resource library shows little to no specific information to what the company is doing as a whole. There are a couple of documents on specific parts of the project but no white paper that covers all aspects. Anyhow, the project does maintain the decency to keep up a nicely written blog with updates frequently. Polymath itself is simply all about STO’s, security token offerings.
Whereas the Ethereum network was created with integrated smart contracts and all its surroundings, it is focused on having the ability for other projects to build on top of the Ethereum blockchain. Besides that, Ethereum sparked the sudden possibility for tons of project to perform ICO’s, initial coin offerings. These smart contracts covered in great ideas and such allowed dozens of projects to raise millions of funding for their project, one of them, in fact, being Polymath. Polymath is doing something different, it’s focused on STO’s as mentioned before.
Where the ICO can sometimes seem a little unregulated and not completely in line legally, the STO aims to solve all of that. Through the same manner as an ICO, the STO is performed to raise funds to create companies or fund projects. Now with the ICO’s, not many of these tokens had direct value. With the security tokens that are being offered with an STO, real value and smart contracts can be embedded within the token representing value or real-life assets.
Polymath helps at facilitating the entire process of setting up an STO to the ongoing management of the whole journey. Through a simple four steps, the company helps projects to successfully run their STO
- Create your security token – Create Security Tokens that can be programmable enforce jurisdictional regulations directly on the blockchain.
- Access our network of trusted partners – The polymath platform consists of KYC/AML, legal firms, brokers, dealers, custody agents and advisory partners to provide you with advice, knowledge and experience to bring your token to the market.
- Issue your compliant security token – Raise your capital with a clean, simple issuer and investor experience
- Manage your security token – Fast and easy dividend issuance, report generation and new investor management to make it easier to thrive in the private market, enabling a path to liquidity.
By now you probably have a clear image of what Polymath is doing; they are an STO platform. But what is the reason why they have raised more than 200 million dollars and what they are currently doing? Let’s find out soon.
Polymath (POLY) Price Prediction 2018
The past year has been a rollercoaster for Polymath, same with any other project during the time of launch in the early 2018’s. Polymath had secured their ICO and successfully raised $207,330,000 dollars selling their POLY token for a price of 0.40 US Dollars. After a couple of days after the token sale, the token was listed on several exchange platforms causing the price to skyrocket all the way up to $1.66 dollars.
Imagine raising this kind of capital with relative ease and then seeing this capital suddenly gaining and eventually doubling. Let’s assume the company had secured a good portion of their funds in order to create a long-lasting run. At this stage, it was still unclear why these huge amounts of funding were necessary for the ideas the Polymath had. In fact, it still is.
In 2018, Polymath does not have a widely detailed roadmap describing all that has been done. They had launched their first smart contracts on the Ethereum testnet that later on came with their own ST-20 token, a security token. Later that year, the ‘Security Token Roundtable’ in Barbados took place, focusing on standardization.
It’s unsure why this is marked on the roadmap, but it’s marked anyways. Months later after launching on the Ethereum testnet, in August 2018 the ST-20 token is successfully live on the Ethereum Blockchain mainnet. The other milestones in 2018 include the release of the V2.0 of the ST-20 token and the initial draft for another token type; ERC1400.
By the end of 2018, the price went from 40 cents at the token sole to 1.66 dollars at its all-time high. At the end of 2018, the price was around 14 cents per token, decreasing in price almost 10 times.
Polymath (POLY) Price Prediction 2020
In all honesty, Polymath seems like a company that simply could not handle the sudden spark in interest in their company and the bankroll that was stacked up till the roof all of a sudden. By setting an incredibly high bar for themselves by raising an incredible amount of money in comparison to other projects, Polymath could only fail in the first year. It was doomed to bring despair to the tons of investors while the company tried to do nothing else than simply work and develop their platform.
These days, it’s unclear how many STO’s Polymath has taken care of, how many security tokens have been created so far and all that had happened behind closed doors. As of lately, the development team has picked up the concerns and is now actively updating the community on their blog page about everything that’s being built. It’s a step forward especially with the announcement of their new division of the company; Polymesh.
This will be a completely new project that eventually will, as claimed by the leading team of Polymath, integrate the use of the POLY token in order to bring value to the POLY token holders. Reading through the communities a ton of unanswered questions pop up with Polymath team members covering up for the questions that are still present.
The reasons for building their own Blockchain as opposed to continuing to build on top of the Ethereum blockchain are diverse. In short, it comes down to being limited on the Ethereum blockchain, thus building their own blockchain will allow them to utilize its full potential. The mainnet for Polymesh is set for Q4 2020, so there’s enough waiting still. Until then, nothing is clear in terms of value brought to the POLY token, so there’s no direct reason why it’d increase.
Polymath (POLY) Price Prediction 2021
According to the roadmap, in 2021 the Polymesh mainnet should be live. It should include the POLY token and it should bring more and more value to the token. As mentioned in their own statements, Polymath is really early in the security token game. There’s nothing much spectacular happening at this stage and it’s unclear to see what the current demand is. One thing we can do is speculate on the future market cap in comparison to where we are at now.
Market Cap: $11.152.719 USD
Circulating supply: 441.056.864 POLY
Total Supply: 1,000,000,000 POLY
To take into consideration that Polymath once had a market cap of over 300 million is scary when looking at the market cap these days. It’s weird to see a project fall from the top-20 projects all the way down to number 280 where it’s at right now. In terms of returns for investors it’s even more dramatic; 0.06x in USD, 0.51 in ETH and 0.11 in BTC value.
Right now, there’s not much demand for the POLY token, there’s simply not a lot to do with it. No staking opportunities right now and no active STO’s that are being created. All Polymath can do is continue building and eventually have their own network up and running in order to facilitate the STO business completely. Eying at the market of raising funds for companies, you could be looking at a multiple billion industry.
Taking just a single percentage of that industry would mean POLY would have a market cap of roughly 100 million, which would bring the price to somewhere around $0.10 cents with the full supply. To reach the price the tokens were sold out, a market cap of a couple hundred million should be reached assuming the full supply will be there at the end of 2021.
Polymath (POLY) Price Prediction 2025
As Polymath is supposed to be an early player in the game, in 2025, let’s assume STO’s are the way to raise money and all companies are using this mechanism. There is not a single company that’s doing traditional ways of raising money and therefore, lots of these companies are using the Polymesh blockchain and its token, Polymath.
What happens then is a high demand for the project and a high value for the token with it. To see if this is true, only time will tell. It’s always hard to predict the future, especially with a company that was valued so incredibly high at the beginning. For now, let’s look at some historical data from other tech-sectors to compare the potential growth.
If Polymath has the average YoY growth that the Internet went through by amount of users (in its adoption phase 1995 / march 2017 = $0.1236
If Polymath has the average YoY growth that Facebook went through (in its adoption phase 2004 / 2016) = $3.18
If Polymath has the average YoY growth that the Mobile Phone went through (in its adoption phase 1993 / 2013) = $0.1175
When analyzing the numbers above, you could hope for an explosive growth like Facebook did. Now for that to happen, we need each and every person to know what STO’s are. There’s no certainty about the future, 5 years ago no one could expect everyone to know what a Bitcoin is so who knows what will happen in the future. It’s safe to say that Polymath is taking their time with releasing lots of products, if it’s for the better or worse, we’ll see about that in a couple of years.