Polymath Locks up $9 million Worth of Native Tokens
Polymath, a blockchain startup focusing on security token issuance, is locking up about $9 million worth of its native tokens for 5 years, which serves as a proof of the company’s healthy funding position.
According to the report from Coindesk, Polymath is locking up 75 million of its own POLY tokens, or 7.5% of total supply and one-fourth of current circulating supply.
74% and 26% of the locked-up tokens will be from those designated for the company and founders respectively. As stated by the smart contract of POLY, the tokens are to be released for use through 2022 constantly, but Polymath is now redirecting part of the tokens to a new smart contract with a longer
Along with the recent cryptocurrency market downturn, many people has also been worrying about the capital status of certain blockchain startups. Chris Housser, co-founder of Polymath, said:
“A lot of projects have shut down or done major layoffs lately due to lack of funds. What we are demonstrating is that our treasury is healthy and we don’t have a need for these tokens at this time. Thankfully we decided early to diversify a lot of ETH/BTC holdings.”
In January 2018, the security token issuance platform raised more than $58.7 million using a Simple Agreement for Future Tokens (SAFTs), according to a filing released by the SEC. Housser said that Polymath is looking for and committed to long-term development of the project.
Housser also commented on the use case of security tokens, believing the strongest immediate interest seems to be in real estate:
“People really like the idea of fractionalized ownership and the ability to own a piece of something that would be much more difficult to do in the traditional world. With more real-estate-based financial products on the blockchain, there will be greater ability to bundle these products to go long on certain areas and short on others.”