I love your thorough research. I also watched countless videos of trevor koverko. You mentioned lots of thing that seem scammy, I've noticed some of them myself and it makes me worry a bit.
But let's come down to earth. Polymath can't be a scam. The people behind it are really incentivized to make it work. The money is not in hyping a coin to the top 100 on coinmarketcap. The real money will come when a few companies launch successful securities and then traditional investors will start jumping on board.
I don't think that anything will happen unless they prove with a concrete example that their system works. I guess we have to wait for tzero and see what happens.
Also, I don't agree with the fact that polymath presents itself as an exchange. Although it may be confusing for some people, if you read carefully the sentence you highlighted in the video it makes perfect sense with what they have written in the whitepaper. By marketplace they mean the market where investors pay in POLY to get verified and issuers pay in POLY to issue their security token.
Also, I didn't find tzero to be ambiguous about being an exchange. In all the interviews I have seen, they even claim that they will list companies in the next 12 month on their exchange. They are not trying to avoid regulations as you said. Their website is also very clear in tzero's purpose.
Finally, we should forget the fact that companies are DYING to list securities on anything related to blockchain. We have seen what happened with Kodak changing their name and so many other stories. Many companies will line up to be listed on tzero. Steven Nerayoff said on record that they have lots and lots of companies asking about this "with a significant percentage of those being already public". If this is not true it is just too blatant of a lie. I don't see such people ruining their reputation so heavily.
Anyway, I have to agree that this whole thing doesn't feel right all the time. But, everyone has all the incentives in the world to make it work, even the SCC for increased tax revenue. I like the fact that you still recommended the strong buy.
I want to clarify that I didn't call Polymath a scam nor do I personally think it is one. But there are a number of suspicious factors about it which lead me to believe that this isn't going to be the security token platform that blasts off.
If their platform completely relies on Tzero (which it kind of does for providing liquidity), then that's already an awful start. I'd like to say that even though it's clear to people who spend a bit of time researching the project, it's obtuse to anyone who quickly glances at Polymath - which is supported by the fact that I've seen a lot of people claiming that Polymath will provide the means to exchange the tokens itself with liquidity when it really isn't - it's just connecting to other platforms that do which are either not functional yet or don't have enough liquidity to be meaningful.
The biggest concern is the idea that a legal template can be created at all for security tokens. It's near impossible to launch a legitimate, registered security token right now even if you AREN'T trying to build a template for future ones to use. That's part of the reason why there are so many aiming for Regulation D / A rather than the registered security route. The fact they want to try and automate this with OUTSOURCED legal delegates? All I am going to say is good luck - It'll work fine until it grows large enough that the SEC, FSA or any of the dozen other agencies decide to intervene. Then all of a sudden it will likely become clear that the "security tokens" launching on the platform really haven't been securities - I wouldn't want to take that risk myself.
And for the companies lining up to go on the blockchain - It's MOSTLY because of the buzz surrounding the word "blockchain." It's a massive opportunity because so much capital is flowing in the region - but I don't know how much of it is honest demand vs. how much of it is a cash grab.
I appreciate your comments as always, know you've been following here a while. I like having comments that are well stated which disagree with me - hope you stick around.
I have an active account with kucoin, don't trade much but hold a couple of obscure coins. I am still hesitant to buy POLY, i haven't looked hard until watching your video....wasn't much of a pitch, but then you didn't exactly trash it either. I will look further but...somehow i can't see this taking off anymore than i can see VERI ever taking off....lots of promise but somehow i don't trust the "pitch". Putting markets or stocks on a blockchain is just too far down the road and will require way to much oversight IMHO.
Just wanted to add you are by far the best crypto channel out there :)
Keep doing what you do!
How will there be "first companies that launch succesful securities" if there is no cooperation with the legal regulators? No cooperation means no first company to launch a security, means no users, which means no use for tzero's intended purpose.
"the market where investors pay in POLY to get verified and issuers pay in POLY to issue their security token"
So the investor pays the issuer and then the issuer pays the investor? What is the investor investing in? In this scheme there is no company to invest in and even if there was, the company couldn't offer POLY as a security if it's not backed by legal regulators.
Why would the legacy institutions that Polymath wants to convert be happy to do so?
I like your take. We are placing a lot of faith in Tzero providing the necessary platform and liquidity. The way the crypto environment works seems to favor a project like this gaining momentum. I mean Cardano's market cap baffles me every time I see it. You can be a "work in progress" and gain serious momentum. I think we have at least a year before Poly's feet start to get held to the fire if things aren't working. Ever single coin has serious fundamental issues, so there is no safe project to be associated with.
Agree