Trevor Koverko: Security Tokens Next Big Crypto Trend
Security tokens are more difficult to launch than ICOs. They’re also costlier than tokens and they take more time to launch. Those who have succeeded in going through the process also find that they cannot get the security token listed on any exchange because most large exchanges, such as Binance, are concerned that it will cause the SEC to become more involved due to the token’s security status.
However, Trevor Koverko believes that things are just about to change. As he stated, security tokens are the “next mega trend in crypto.” Koverko is recognized for his CEO status in Polymath, a large security token platform. He recently discussed his stance at the World Blockchain Forum in London. He also addressed what most investors in Ethereum, EOS, and ShapeShift look for when investing in new projects.
Trevor is excited about security tokens – especially because they are able to turn paper contracts, bonds LP shares, real estate, and so much more into programmable contracts on the blockchain. This type of ability could “eliminate your entire back office.” Further, the SEC has already started labeling many tokens as securities, whether issuers like it or not, and as a result, people need to be prepared for it. Polymath “breaking telegraph” and capping with a group of 50,000 have enabled it to amass a large community. Further, the platform has a group of advisors that includes top names such as Patrick Byrne, Anthony Di Lorio, and Erik Voorhees.
Polymath has gained a great deal of attention lately due to its ability to provide issuers with the technology that they need to launch their own security token. The technology, called ST20, is what Trevor believes will be the new standard for securities tokens. As he mentioned, “We’re the Ethereum of securities tokens.”
Further, even those without a technical background can launch their own token and it takes just a few clicks. Trevor also discussed what the believes are the keys to success. He stated:
A few things. I start with the team. That’s absolutely number one. No matter what, if the team’s doggy den that’s a no. The background is really important to me. I need people that are dedicated to the project.
There’s a lot of projects that have a celebrity face and they don’t do the work. They’re just the name of it and everyone likes to have 12 projects on the go. I prefer projects like Polymath which is my only thing. I’m the founder and the COE and I’m dedicated to it and I like projects like that too.
Trevor also stated that the terms and structure is important as well. “The valuation, the mechanics of the token, the circulating supply, how that changes over time. All the mechanics of the token are very important to me.”
Essentially, it is imperative to have a team with advisors who are ready to get their hand’s dirty, it is important to be dedicated to one’s project, clear and logical outlines that address the mechanics of the token and how its supply will change over time, and strong underlying technology are what one needs.
At the end of the day, though there are issues with the security token market, Polymath is partnering with exchanges such as tZero, Hyperion, and OpenFinance to provide greater liquidity when it comes to security tokens. Further, Trevor is enthusiastic that the rules are going to change. As he mentioned, “I think that these rules need to be updated. Just because you have money doesn’t mean you’re an intelligent investor.”