Trevor Koverko is a blockchain entrepreneur, former NHL player, and co-founder of Polymath, an RWA tokenization platform; Polymesh, a purpose-built L1 RWA blockchain; and Sapien, a company providing human data labelers for LLM model fine-tuning. ^[1][2][3]

Education

Koverko received his HBA in Business from the Ivey Business School at Western University in 2012. ^[4]

Career

In January 2005, Koverko was a National Hockey League (NHL) draft pick for the New York Rangers. A few years later, a car accident forced him to leave hockey due to a brain injury. While in the hospital, he discovered entrepreneurship and developed his first start-up, eProf.com, which didn’t work out. He later worked on an unnamed VR project using the Oculus Rift DK1, which he eventually sold to a Canadian private equity fund. ^[4][5]

In August 2017, he co-founded Polymath, where he helped develop RWA tokenization and worked on the Polymesh blockchain. He co-founded and launched Polymesh in 2019 and became a member of the YPO, a global leadership community of CEOs. In August 2023, he co-founded Sapien and became a member of HF0, an AI residency for repeat founders. ^[4][5]

Polymath

In September 2020, Anna Tutova of Coinstelegram Advisory interviewed Koverko about his past, founding Polymath, and interest in crypto. He started with his background: ^[6]

“I moved away when I was around 16 or 17 years old. Hockey was my identity—that's all I did. I did a bit of school and things like that, but hockey was what I was known for. Then, I was in a car accident that abruptly ended my career, so I had to reimagine myself and find a new identity after the injury ended my career. At the time, I was exploring different paths because I didn't know what I wanted to focus on. I went back to business school and was going down that path, and then crypto came onto the scene. I was very lucky, not only being in certain circles that allowed me to learn about Bitcoin super early, around 2011 or 2012. I was super lucky—just some of the groups I was in were talking about it, and I was hanging out in those circles. Then, around 2015 or 2016, Ethereum was emerging as a new project with a lot of excitement behind it. I was super lucky to be in Toronto at the time, right in my backyard, where Vitalik and many of the other co-founders of Ethereum were from. That's when I decided, "Hey, this is something I'm really excited about and want to dedicate the next phase of my life to." That was the first part of my journey into crypto.”

“In November 2012, I bought one Bitcoin on eBay for 20 bucks. That was my big conviction moment—a whole $20 to buy a Bitcoin back then. It was a different world; the infrastructure wasn't there, and I didn't know the difference between cold storage and hot wallets. So, I just thought, "Hey, what the heck, someone on eBay is selling it with a good rating, so that's good enough for me." I actually took that one Bitcoin and invested it in the Ethereum crowdsale, where you got around 2,000 ETH. To this day, I still hold those ETH as a sort of ornament or shrine to my learning about crypto, and I'm very grateful to the Ethereum team for educating me on what's possible with blockchain.”

He then shared how Polymath was created: ^[6]

“In 2015, I was running a private equity fund, and one morning we thought it would be fun to tokenize our fund. At the time, there were maybe one or two other examples of tokenized financial assets, so we considered doing the same—upgrading our fund to the blockchain. We didn't fully understand the benefits and costs of doing this, but it seemed worth exploring. As we delved into it, we realized it was extremely difficult, almost impossible, to do it legally. Security tokens weren't really a thing back then, and there was no way to restrict unauthorized investors, like unaccredited investors or those on a banned list, from holding a security token. Essentially, securities laws in the financial system didn't reconcile well with the open and permissionless nature of crypto. Seeing this gap, we identified an opportunity to build a platform that could address these challenges and make it not only possible but easy to launch a tokenized asset.”

When asked about the current state of security tokens, Koverko responded: ^[6]

“We've been discussing the promise of security tokens, and it's taken some time to develop the necessary infrastructure to fully realize their benefits. I'm pleased to report that this year has seen significant growth in the security token market. Since January 2020, the market has been doubling each month. We track this data through STOmarket.com, which is like the CoinMarketCap for security tokens, and it monitors the industry's growth. While the market is still small due to its early stages, the exponential growth is evident. The chart shows a "hockey stick" formation in both market cap and volume for security tokens.”

Sapien

On the “Colors of Web3 & Entrepreneurship” podcast, Koverko shared his vision for Sapien, starting with how it was founded: ^[7]

“I have a friend from Waterloo who has a Master's in machine learning, and he was teaching me about AI. I asked him for a crash course on the technical aspects of the AI stack. During our discussion, I learned that humans are crucial in the creation of AI, which was surprising because I thought it was all about sentient machines interacting. It turns out there's a significant human component in producing AI technologies like ChatGPT. I became intrigued by the AI creation process, which revolves around two main elements: data and compute.”

“It starts with raw data, of which two exabytes are created every second on the internet. AI systems require more data than what is currently available, and human input is essential for structuring and fine-tuning this data. OpenAI pioneered the use of industrial-scale human feedback in large language models by employing extensive facilities of humans to provide feedback before and after training. This technique, known as reinforcement learning with human feedback (RLHF), played a key role in the success of models like ChatGPT and DALL-E. Human involvement is crucial for correcting biases, addressing ethical concerns, and assisting with annotation and labeling.”

He then explained how human labeler facilities work and why he decided to focus on data labeling: ^[7]

“Large facilities staffed with people handle data labeling tasks around the clock, similar to Amazon Mechanical Turk. This approach, which resembles early web practices rather than modern Web3 principles, prompted the creation of Sapien. The idea behind Sapien was to rethink the data labeling process from first principles, focusing on making it more engaging and efficient for labelers. By treating labelers as customers and incorporating gamified elements, Sapien aims to unlock the necessary data supply in a more innovative way.”

“The challenge in data labeling is securing enough labelers, which involves onboarding, training, and vetting them. Travis Kalanick at Uber dedicated significant effort to addressing driver recruitment and retention, leading to a surge in taxi drivers due to ride-sharing. Similarly, the goal is to transform data labeling by making it more appealing than traditional methods. Just as Uber improved the driver experience by offering flexible hours, eliminating costly medallions, and increasing earnings, the aim is to enhance the data labeling process by making it more efficient and rewarding for labelers.”

When asked about their new gamification and incentives for future data labelers, Koverko responded: ^[7]

“To reduce infrastructure needs, a decentralized approach uses clever incentives. For example, a gamified system allows labelers to spin a wheel for rewards based on accuracy or earn points for future use. This method offers flexibility and convenience compared to traditional, more rigid jobs, allowing labelers to work from anywhere and at any time. The system includes a points-based payout, where earnings are calculated based on points, a multiplier coefficient, and a conversion rate into crypto. Additionally, a Web3 version introduces staking, where users can increase their accuracy by staking tokens, with potential earnings linked to their performance. This creates a system where users have both incentives to perform well and risks if they attempt to game the system.”

Toward the end of the interview, he shared his view on the future of AI and Web3: ^[7]

“There's a natural synergy between AI and Web3. As AI evolves, it will require a currency for transactions, making Web3 tokens a fitting solution. Currently, big tech companies dominate AI, accruing most of the value, while Web3 offers more opportunities for startups. The goal is to decentralize AI similarly to how Bitcoin decentralizes finance. For instance, companies like Ritual are working on decentralizing compute by allowing people to rent out their GPUs. This approach aligns with the broader vision of distributing power and resources across the AI landscape.”

Interviews

Entrepreneurship

On the "Rent is Due" podcast, Koverko reflected on his journey from a professional sports career to the challenges and triumphs of entrepreneurship. He discussed the transition from hockey, where he developed a competitive mindset, to founding and building tech companies like Polymath and Polymesh. Koverko emphasized the importance of adaptability, the value of competing at a high level, and the critical lessons learned from both his athletic and business experiences. He also touched on the role of networks, perseverance, and the evolving landscape of tech entrepreneurship. ^[8]

Crypto and the NHL

On The Pal’s Podcast, Koverko discussed his transition from being an NHL draft pick for the New York Rangers to becoming a tech entrepreneur focused on blockchain and cryptocurrency. He recounted his journey from dealing with career-ending injuries and early retirement to pursuing education and work in Silicon Valley. Koverko explained his involvement in startups, including his role in acquiring and managing online businesses and his efforts to innovate with tokenized funds and decentralized finance. He also shared insights on the evolution of crypto and its comparison to the dot-com bubble and emphasized the importance of long-term investment strategies and diversification. ^[9]

Panels

Fireside Chat

At CoinAgenda 2022, Koverko discussed his journey from being a professional hockey player to becoming an early participant in the cryptocurrency space, particularly within the Ethereum community in Toronto. He highlighted his experiences with key figures like Vitalik Buterin and Anthony Di Iorio and recounted the early days of Ethereum development. Koverko also shared insights into the creation and evolution of Polymath, a platform designed to tokenize financial securities, detailing the challenges of building a blockchain tailored for legal compliance and security. The conversation concluded with reflections on the current state of tokenization and the regulatory landscape, emphasizing the convergence of technological advancements and increasing regulatory scrutiny in the crypto industry. ^[10]