Polygon [POL] just became a US-regulated payments business. The native token didn’t hear the news, and dropped 7% .
Let’s take a good look at the damage. POL was at $0.102 on October 11 . At the time of writing, POL was down to $0.0948 . That’s a 7% hit.
Note, it wasn’t for lack of trying. POL attempted to recover on October 12 and 13 , but selling pressure prevented either rebound from lasting.
From the 13th onward, it just got slower. On the day of writing, things got ugly as POL fell close to $0.090 . It’s clawed back a bit since, even poking near $0.097 for a moment. That didn’t stick.
The indicators didn’t give much to write home about. RSI was at 44.9 , near neutral. Chaikin Money Flow was at -0.11 . It jumped up just a bit during that last bounce, then dropped right back into the red.
The futures crowd doesn’t look too happy either. Open Interest went to $50 million on the 12th. It’s only fallen ever since. Funding has also been in flux all week, so there’s a lack of concrete confidence in the token.
Through Coinme, Polygon Labs now has regulated infrastructure for converting dollars into digital assets and back across 48 US states , subject to the applicable licensing requirements.
How does that work? Coinme has 37 money transmitter licenses and 11 exemptions. The business is also registered with FinCEN as a money services business.
Coinme is now part of Polygon’s Open Money Stack. It already has its first users: Tazapay, Mesh, Toku and Kira.
For context, Polygon agreed to buy Coinme and Sequence (a wallet provider) for over $250 million together. It cut some roles too. CEO Marc Boiron said the plan was to turn Polygon into a payments-focused blockchain.
Ten months later, that plan is real; except the token hasn’t yet caught on.