Polygon an Indian Crypto startup in a recent merger buys Hermez for $250M; this will merge firms’ tokens. Polygon, a previous Matic Network, was formed by the three Indian software engineers back in 2017.
The current merger between Polygon and Hermez is also the country’s first-ever crypto-powered merger. The ether-powered project, Polygon, also revealed their plans for the future.
Hermez, a zero-knowledge (ZK) crypto-based project will now become Polygon’s subsidiary and will receive the amount of USD 250 million. A zero-knowledge technology can keep the track of information without any knowledge about the matter. This technology will enable Polygon to verify the data, such as digital transactions and personal information, without handing control of the information.
As the result of this strategic venture, Indian crypto startups will now operate under the name of Polygon Hermez. India is one of the world’s IT hubs. Nowadays, the country’s talent is actively working on digital technologies to launch their native crypto exchanges and coins.
As the result of this newly formed merger, all components of the Hermez such as – technology, live solutions, its 26 member’s team, and HEZ tokens will become part of Polygon’s digital ecosystem. Polygon’s official statement said that very attempts have been made so for on merging these two networks. “The merger is nothing less than a historical moment since this is the country’s first-ever full-scale merger of two of the blockchain giants.”
While talking about the current merger, Polygon also said that HEZ token holders will be able to exchange their tokens for Polygon’s native digital tokens (Matic) via the swapping control services, currently in the developing phase and would be launched soon. The proposed swapping ratio is set at 3.5 Matic:1 HEZ.
However, it has been told by the officials that after a specific date, HEZ tokens would be ceased. The date is yet to be finalized. Matic lies among the world’s top 20 cryptocurrencies with a market share of over $9.5 billion. As of Friday, Matic was trading at 13% higher than its actual market price. However, HEZ token’s current market capitalization is around $55 million, and it was trading at $5, which is 16% higher than its actual price.
The current merger between Polygon and Hermez is the country’s biggest-ever crypto development, and it has opened the doors for future crypto exchanges. Indian citizens have welcomed this development. Indian economic experts have voiced that crypto has emerged as a backup in the wake of Covid-19. Polygon, which was formed, back in 2017, has provided citizens with a better earning alternative.